Turnover calculation for intra day share trading
This query is : Resolved
06 September 2021
Dear All,
I want to know about intra day share trading i.e. speculation business income or loss.
1) How to show speculation business income or loss in ITR?
2) There are two options. Whether regular books of account are maintained or not? Now all reports are available in computerised form. Which option to select?
3) How to calculate Turnover for speculation ?
Kindly guide.
Regards,
Suraj
I want to know about intra day share trading i.e. speculation business income or loss.
1) How to show speculation business income or loss in ITR?
2) There are two options. Whether regular books of account are maintained or not? Now all reports are available in computerised form. Which option to select?
3) How to calculate Turnover for speculation ?
Kindly guide.
Regards,
Suraj
06 September 2021
1. Yes, you can declare the income with regular books of account maintained in ITR3; unless you wish to declare it under presumptive assessment.
2. Turnover in the case of Intraday Trading is Absolute Turnover,
Absolute Turnover is the Sum total of absolute profits minus losses made on daily transactions.
2. Turnover in the case of Intraday Trading is Absolute Turnover,
Absolute Turnover is the Sum total of absolute profits minus losses made on daily transactions.
Message likes :
2 times
06 September 2021
Rambhia Sir, in present case sales value is 2,45,81,652/- and purchase cost is 243,45,748/-, the profit comes to Rs.235,904/- , so the absolute turnover will be Rs. 235,904/-..... am I right?
and books are not maintained, the turnover and gross profits would be Rs. 235,904/-... right? Kindly guide.
and books are not maintained, the turnover and gross profits would be Rs. 235,904/-... right? Kindly guide.
07 September 2021
No. That is not correct method...
For all speculative transactions, aggregate or absolute sum of both positive and negative differences from trades is to be considered as a turnover.
So if you buy 100 shares of Reliance at 800 in the morning and sell at 820 by afternoon, you make a profit or positive difference of Rs 2000, this Rs.2000 can be considered as turnover for this trade.
But if you had sell at 780 then also turnover would have been same i.e absolute of (-2000) i.e. 2000/- while there would have been loss of Rs. 2000/-
Now, suppose you had done both these transactions (may be on different date). Your turn over would have been Rs. 4000/- while profit/loss NIL.
So consider each transaction separately, and go on adding ABSOLUTE value to get the Turnover.
For all speculative transactions, aggregate or absolute sum of both positive and negative differences from trades is to be considered as a turnover.
So if you buy 100 shares of Reliance at 800 in the morning and sell at 820 by afternoon, you make a profit or positive difference of Rs 2000, this Rs.2000 can be considered as turnover for this trade.
But if you had sell at 780 then also turnover would have been same i.e absolute of (-2000) i.e. 2000/- while there would have been loss of Rs. 2000/-
Now, suppose you had done both these transactions (may be on different date). Your turn over would have been Rs. 4000/- while profit/loss NIL.
So consider each transaction separately, and go on adding ABSOLUTE value to get the Turnover.
Message likes :
3 times
07 September 2021
Here is an example on absolute turnover. Hope this helps you:
Mr.X buys 1000 shares of ABC Ltd at Rs.100. He sells the shares at the end of the day at Rs.110.
Profit = Rs.10 * 1000 shares = Rs. 10,000/-
On the next day, he buys 200 shares of PQR Ltd at Rs.300. At the end of the day, he sells the shares at Rs.280.
Loss = Rs. 20 * 200 shares = Rs. 4,000/-
Absolute Turnover = Rs. 10,000+ Rs. 4,000 =Rs.14,000/-
Mr.X buys 1000 shares of ABC Ltd at Rs.100. He sells the shares at the end of the day at Rs.110.
Profit = Rs.10 * 1000 shares = Rs. 10,000/-
On the next day, he buys 200 shares of PQR Ltd at Rs.300. At the end of the day, he sells the shares at Rs.280.
Loss = Rs. 20 * 200 shares = Rs. 4,000/-
Absolute Turnover = Rs. 10,000+ Rs. 4,000 =Rs.14,000/-
Message likes :
3 times
22 September 2021
Most Welcome ...
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on Deemed Capital Gain
- Exiting partner in partnership firm in gst portal
- Type of Capital Gain
- F & O PROFIT REPORTING FOR AY 2026-27
- TDS on property - Form 141 query
- Can a single LLP in India legally operate multiple unrelated businesses (Travel, Cloud Kitchen, Ecom
- Banking Related Issue
- Average Cost Of High Quality Diamonds
- Applicability of Books of Account for Commission Income (Sections 194D & 194H)
- Difff in ais receipts and gst turnover
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
