F&O transactions question

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Rohit Rathod (Querist)
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24 November 2025 here is the case scenario

f&o transactions
sale qty 15 cr, profit is 4 lakhs & loss is 10 lakhs
absolute figure is 14 lakhs but actual loss is 6 lakhs.

turnover would be 14 lakhs and let loss would be 6 lakhs then balance figure of 8 lakhs is not matching as per profit of 4 lakhs or loss of 10 lakhs

1. tax audit or itr?
2. if ITR (presumptive) - 6% profit need to show however actual loss is 6 lakhs, means need to do tax audit ?
3. if tax audit as per point 2. turnover would be 14 lakhs as per tax audit guidelines issued by icai but actual loss is 6 lakhs how to reconcile?

My 2 pov:
(1) For the profit and loss account, show the Rs. 14 lakhs as turnover (revenue figure) and then record Rs. 10 lakhs as losses and Rs. 4 lakhs as profits, resulting in net Rs. 6 lakhs loss, but that does not match totalling of credit and debit balance
(2) Sale - 15 cr and purchase - 15.06 cr resulting into 6 lakhs loss

Any suggestions?

Dhirajlal Rambhia online

Dhirajlal Rambhia online

(Expert)
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24 November 2025 Turnover Calculation for F&O
- As per ICAI Guidance Note (para 5.14(b)), turnover for derivatives = sum of favorable and unfavorable differences.
- Here:
- Profit = ₹4 lakhs
- Loss = ₹10 lakhs
- Turnover = ₹14 lakhs (absolute sum).
- Net result = Loss of ₹6 lakhs (10 – 4).

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