Comment on Notice under Section 139(9)? - Possible reason
commented on
11 Oct 2013, 09:20 AM
Abrar,
When you sell options nothing is debited from your account, only a margin is blocked in your trading account. This margin blocked is not considered for turnover and hence we use the settlement profits.
When you buy an option first and if you hold the position to the next day, the premium amount gets debited from your trading account and when you sell the premium gets credited. In this case the entire premium debit + credit has to be considered for turnover.
But as I mentioned earlier, this calculation of turnover is a complete mess since there is no guidelines for the same, so it is best to get your books audited if you are a f&o or a frequent equity trader.