Comment on Notice under Section 139(9)? - Possible reason
commented on
15 Apr 2015, 05:23 PM
Hi Nithin , Keep up the good work going .. i had a doubt wrt to TO calculations in case of heavy options premium.
A bit of unique case , I trade in Nifty Deep ITM options mostly and very less futures in involved , So wanted to understand that whether Net pnl arising out of buying / selling 1 option is considered or the entire premium value will be used as turnover figure ( not contract).
For eg if I buy 40 lots Nifty ITM option (say 7500 CE strike) at say 1000 rs and then sell at 1100, my profit would be 100*1000 = Rs 1,00,000, while the total value of the premium would be (1000*1000)+(1000*1100)=Rs 21,00,000.
The reason i m asking is , in eod reports the option premium amount is usually clubbed with futures mtm and not shown separately with most brokers
I am not able to calculate the turnover due to the option premium settlement values…
Say for eg. my futures mtm (futures net profit) for the entire year is less than 2 lakhs , but options turnover is say 3 cr ( value debit 1.48 cr , value credit 1.52 cr) … options profit 4 L … total profit = 2 + 4 = 6L
if 8% rule is on premium , then it seems strage when the TO crosses a threshhold of say 2-3 cr , then it is difficult to generate /show 16-24L profits .. else even after auditing u stand a chance to receive a notice from IT dept.