Comment on Taxation for Traders - Introduction
commented on
24 Jun 2013, 01:54 PM
Babu,
Assume I have traded nifty in june and july. My net profit for june was 20000 an net loss in July was 10000. My turnover for nifty is 30000.
Like this when you are calculating turnover, all such profits and losses of various contracts has to be added. Our PL report does this calculation for you and at the bottom of the sheet shows Total profits and total losses. Add this number and this is your turnover on FNO.
Similarly you need to take PL reports for various segments and add them together.
One thing you have mistaken is that when doing delivery business, your entire debit and credit from the ledger is considered as turnover. So if you bought stocks for 10,000 and sold for 11000, your turnover is 21000( 10+11).
You cannot add expenses to the turnover. By turnover, it again means gross turnover as shown in PL report.
You will have 1st Total turnover: which includes turnover calculated as mentioned above.
2nd: expenses: Brokerage, STT, Internet, etc are all expenses.
Turnover – expenses = Profits.
Hopefully this clarifies.