Comment on Business Line: Read Section 44AD when filing return

Nithin Kamath commented on 31 Jul 2013, 08:33 AM

Rainmaker,

Turnover the way it is calculated is usually contentious as there is no rule given by the IT department for stock market business. What we follow and which is widely followed is the settlement turnover.

The calculation the way you have mentioned is not correct. Basically whatever is the net profit or loss on a particular contract are totally summed up. So if you have trade July 6000 calls and made net profit of 10000 and trade Aug 6000 calls and made a net loss of 20000, your turnover is 30000.

If you look at the P&L statement, you will see a total payable and total receivable, you sum both of this you get the turnover.

Do read this blog where we have detailed discussion, ” Taxation Simplified”

Turnover is important to know if your books need to be audited or not, so it is always better because there is no rule for calculating turnover that if you are someone trading on f&o, have your books audited by CA in any case.

Cheers,

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