Comment on Notice under Section 139(9)? - Possible reason

Hi Nithin,

I require one more clarification in terms of calculating option turnover specially for below point.
>>Premium received on sale of options is to be included in turnover.

Does it needs to be included only when the option is not squared off ? i.e the option is expired as 0. but then also it is considered as profit/loss only ( depends on the position taken first either sell or buy) , and if we consider the sale value again, then it will be a double calculation of the turnover.

Another normal case, when we are taking the profit from option then how come the sale value to be considered as Premium received as in original the premium is squared off in terms of profit and loss( logically), hence the profit/loss should be calculated as turnover only.

For me it seems to be a debatable topic, where some people consider only profit/loss for turnover calculation just like Futures.

In case you have a different opinion , please share your thoughts on it.

Regards
Nishant

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