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

Siddharth Surana commented on 22 Mar 2015, 12:22 AM

I’ve been reading informative comments here. As per my understanding, to calculate turnover you need to add results of each completed transaction(round trip) within a series (or contract) regardless of sign. E.g. on day 1 you buy one lot of NIFTY April expiry futures and sell for a profit of 10,000 and next day you buy and sell NIFTY April again for a loss of 5000. your turnover would be 15,000 and not 10,000. This is because of the fact that each individual trade (buy or sell) is basically a contract to buy or sell with another counter-party. Just like if you were buying and selling physical goods each transaction has a potential for profit or loss and is independent of the last or the next transaction within the same scrip/series/contract (E.g. NIFTY April). Would be happy to discuss.

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