Turnover Calculation as per 8th Edition in Option & 44AD Applicability
This query is : Resolved
03 May 2023
Dear Experts,
As per 8th edition of the ICAI, turnover of Option will be calculated by ABSOLUTE formula, like a Future. Is it correct as below?
(i) The total of favourable and unfavourable differences shall be
taken as turnover.
(ii) Premium received on sale of options is also to be included in
turnover. However, where the premium received is included for
determining net profit for transactions, the same should not be
separately included.
Incase of Loss or less than 6% Profit in Option Trading and Turnover is below 2 Crore, will 44AD be OPTIONAL or MANDATORY? In case of Loss, can it be carry forwarded to future years without Tax Audit where Turnover below 2 Crore and 44AD not adopted?
As per 8th edition of the ICAI, turnover of Option will be calculated by ABSOLUTE formula, like a Future. Is it correct as below?
(i) The total of favourable and unfavourable differences shall be
taken as turnover.
(ii) Premium received on sale of options is also to be included in
turnover. However, where the premium received is included for
determining net profit for transactions, the same should not be
separately included.
Incase of Loss or less than 6% Profit in Option Trading and Turnover is below 2 Crore, will 44AD be OPTIONAL or MANDATORY? In case of Loss, can it be carry forwarded to future years without Tax Audit where Turnover below 2 Crore and 44AD not adopted?
03 May 2023
Yes, declare the income/loss with books of accounts maintained.
Tax audit not mandatory, if sec. 44AD had not been opted in any FIVE years, earlier.
Tax audit not mandatory, if sec. 44AD had not been opted in any FIVE years, earlier.
04 May 2023
Thank you Sir but I am still in confusion as your reply can't be understood.
A. Incase of loss in option trading and without audit, loss can be carry forwarded to future years where turnover is below 10CR?
Other related queries.....
B. If broker provides P&L Statement then should I need to keep books maintained?
C. Should I need to report anything in to the B/S part in the ITR as I am an individual and haven't accounting system?
D. Should I report Sale as total premium received & Purchase as total premium paid or anyother method then pls inform?
SIR humble request to give your comment query wise so confusion can be avoided.
A. Incase of loss in option trading and without audit, loss can be carry forwarded to future years where turnover is below 10CR?
Other related queries.....
B. If broker provides P&L Statement then should I need to keep books maintained?
C. Should I need to report anything in to the B/S part in the ITR as I am an individual and haven't accounting system?
D. Should I report Sale as total premium received & Purchase as total premium paid or anyother method then pls inform?
SIR humble request to give your comment query wise so confusion can be avoided.
04 May 2023
A. Yes. unless audit u/s. 44AB(e) was mandatory.
B. Yes, if sec. 44AD of IT act not opted.
C. Yes.
D. Follow the process ... https://www.angelone.in/knowledge-center/futures-and-options/how-to-calculate-f-and-o-turnover
B. Yes, if sec. 44AD of IT act not opted.
C. Yes.
D. Follow the process ... https://www.angelone.in/knowledge-center/futures-and-options/how-to-calculate-f-and-o-turnover
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05 May 2023
Thank you Sir for the most valuable knowledge.
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05 May 2023
You are welcome.
09 May 2023
Dear Sir,
Thank you for the valuable knowledge.
Thank you for the valuable knowledge.
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