Comment on Taxation Simplified
commented on
12 Apr 2013, 06:27 PM
TURNOVER FOR THE PURPOSE OF TAX AUDIT U/s 44AB AS PER CLAUSE 5.11 OF GUIDANCE NOTE ON TAX AUDIT BY ICAI.
As per guidance note by ICAI all CAs calculate turnover as below for FNO:
Point 1) The total of positive and negative differences , plus
Point 2) Premium received on sale of options is also to be included in turnover ,plus
Point 3) In respect of any reverse trades entered, the difference thereon.
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Confusion in calculating Turnover for Options:
Option shorted at Rs.10 , lot 100 premium received = 1000
Option covered at Rs.6 premium paid = 600
Profit = 400
Turnover = 400 + 1000 = 1400
Should it be 400 ???