11 August 2015
One of my client did F&O transactions in FY 2014-15 and having few amount left on 31/03/2015 as margin money.
I checked in web and found that these transaction have to be considered as normal business and need audit.
For calculation of turnover, as per detail found in various sites, total of both credit (profit) as well as debit (loss) will be added.
My queries are:
1) Whether to treat the F&O transactions as normal business or speculation business?
2) If considered as normal business, then whether to audit the accounts of the assessee?
3) If audit is needed, then what will be turnover? If agreegate of both debit and credit is considered as turnover, then how P&L can be framed? If you have any audit of F&O accounts, please send me format for needful.
11 August 2015
1 It is only a normal business. 2 Only credit is considered as turnover and it exceeds 1 crore audit is required. In case of less than 1 crore turnover and declaring less than 8% profit and total income is above basic exemption limit then audit is required.
12 August 2015
In case of options trade credit is to be taken as turn over but in case of futures trade the difference between credit and debit has to be taken as turnover.
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