Comment on Taxation Simplified

Sharan,

I guess your query on option turnover is for knowing whether you will have to audit the books or not.

All settlement profits + losses together is considered as turnover.

1. In this case your settlement profit is Rs 4000 and that is your turnover.

2. Your settlement loss is Rs 4000 and that is your turnover.

3. If your option expires at 0, then you have made a loss of Rs 12000 and this would be considered as turnover.

Hope this helps,

Cheers,

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