Comment on Taxation for Traders - Introduction

babu commented on 24 Jun 2013, 05:44 AM

Thank you very much Zerodha for the answer.
I am quickly summarizing your answer using examples below for better understanding for me and other readers. Sorry for the long illustration.

Total Profit in F&O Including NSEFnO, CDS, MCX = A = 23000
Total Loss in F&O Including NSEFnO, CDS, MCX = B = 10000
Total Profits from Delivery Based Trading = C = 5000
Total Loss from Delivery Based Trading = D = 6000
Total Profits from Intraday Equity = E = 2000
Total Loss from Intraday Equity = F = 4000
Total expenses including internet, etc = G = 3000
Total Cost of Unsold equity stock as on 31/03/2013 including brokerage, service tax etc.(calculated using FIFO method since some of these stocks were intraday traded) = H = 30000

Total Turnover = A+B+C+D+E+F = 50000 Is this correct? Or should I add H also here?
Total profit = A-B+C-D+E-F-G = 7000 (this is 14% and I don’t need to auditing) Is this correct?

The loss/profit and revenue of unsold stock will be accounted when it is sold (say in next AY). Is this correct?

Also the profits and losses in A, B, C, D, E, F are calculated after including the brokerage, service tax, T/O Charge, STT, Stamp charges etc. Is this correct method? or Instead I should add them together to G, so that revenue will not include brokerage etc? The reason why I am asking this is, the P&L report on Zerodha Backoffice does not account for brokerage etc.

Thanking you again for the support…

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