Option Intraday trade & its turnover calculations reporting in ITR.

This query is : Resolved

rmalhotra (Querist)
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21 December 2023 Sir,

Here is specific and pin pointed queries of Option Intraday Trades & related issues.
In fact Institute guidelines issued in
Aug 2022 details method of calculating turnover in Future & Option trade. and states that it needs to be treated under head " Income from Business & Profession ". But could not find clarification on following points pinpointedly. In guidelines only reference is of " Future & Option " but not of Intraday trade within "
future & Options which is extended up to expiry date of contract where as Intraday trade of " Options (Equity & Currency ) is squared off on that day itself. Hence following queries :-

1 Is Intraday Trade in OPTIONS (Equity or Currency ), is also to be treaded under same head of " Business & Profession " and is required to be reported in ITR 3. ?
OR
2. Intraday trade of OPTIONS ( Equity or Currency derivatives ) is to be treated as " "Speculative " business as nature of trade is to close the trade in short time and close it by expiry time of only that day itself as it is " Intraday Trade only ".?

3. In currency trade , how is turnover to be calculated. Is it total of Buy & Sell absolute values ( i.e of total transaction amount as it is currency trade ) OR is it total of absolute figures of only Profit & Loss figures ( i.e. Profit & Loss figures only ). ?

4 Does treatment in case of Option (Equity derivatives ) trade differs from that of Currency Option trade ?

Pls guide on above points .