Comment on Taxation Simplified

Madhav,

My advice would be that since you have done only 5 trades in the year in equity, show that under STCG (Short term capital gain) and LTCG (Long term capital gain), turnover won’t really matter in this case. Your futures trading, show it under business income, if you have done 20 trades, your turnover will definitely be under 50lks and since you have a profit of 4lks, which is more than 8% of your turnover, you would not even need an audit.

For the 20 trades to calculate turnover, see the total settlement profit, and settlement losses for every contract you have traded (Reliance oct is separate, Reliance Nov is separate) the sum of this is the turnover.

Cheers,

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