16 April 2019
The manner for computing turnover in F&O business is different from any other business. In case of F&O business turnover would be total of all favourable and unfavourable trades at the end of the year, premium received on sale of options would also be included in turnover. For example, you make profit in one F&O trade of Rs.20000 and you make loss of Rs.10,000 in another F&O transaction then total profit will be Rs.10,000 for computing business income. But for computing turnover, the turnover will be Rs.30,000 (Rs20,000 plus Rs,10,000) total of all transaction irrespective of whether it is favourable or unfavourable.
16 April 2019
Thank you. But to understand very clearly, can you clarify my understanding. For example, I buy option of Bata qty 550 , strike price 1400 at option value of 12 . I sold later at option value of 14. Then what will be my turn over. Kindly pl help.
CAclubindia
