FROM DAY TRADING AND F&O MY TURNOVER DURING F.Y. 2015-16 IS 14 LAKH AND LOSS IS 6200. WHAT IS THE TAXABLE TREATMENT ??
There is different way of calculating turnover in case of Intraday trading and F&O transactions.
In case of intraday and Future transactions, aggregate of negative and positive differences of each transaction is your total turnover.
I. Calculation of Turnover
For eg in Intraday:
In 1 transaction, sale amount is Rs. 2 lacs and purchase price is 2.10 lacs, then turnover=10,000(difference - negative or positive does not matter)
In another transaction sale amount is Rs. 5 lacs and purchase amount is Rs. 4.75 lacs, then turnover=25,000(difference - negative or positive does not matter).
Thus total turnover of Intraday transaction is Rs. 35,000/-(25,000+10,000). Total profit is Rs. 15,000/-(-10,000+25,000).
Similar is also the calculation for Future transactions.
For Option transactions, the Premium amount recieved on sale of options is regarded as turnover.
II. Tax Treatment:
A) Speculation and Non-Speculation Business:1. Intraday Transactions is regarded as Speculation Business.
2. F&O Transactions is regarded as non-speculation business.
B)Tax Audit or not:
a) If total turnover of the Assessee is less than 1cr, then the has the option of not maintaing books of accounts and reflecting a profit of not less 8%;
b) If the assessee reflects a profit of less 8% or loss, then the assessee is required to get the books of accounts audited and file the Return.
C) Carry forward of Loss:
a) The loss incurred by the assessee can be carried forward to the subsequent years, only if the Return is filed within the due date. The carried forward loss can be set off against the profits of the subsequent years.
If the individual assessee dooes not have tax audit, then the due date is 31st July and if his books of accounts areaudited then the due date ofiling return is 30th Sep.
Hope the above suffices your query.
CA Dhruv Gaglani.
+91 96197 96967
Dhruva is right, to check Tax Audit applicability you should check whether your net turnover cross 1 crore. Turnover should be calculated as guided by CA Dhruva.