Turnover declaration

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Querist : Anonymous

Querist : Anonymous (Querist)

17 December 2015 What is the meaning of Turnover declared in AOF & Turnover declared in Trade KYC ?

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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02 August 2025 Great question! Here's a simple explanation:

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### Turnover Declared in AOF and Trade KYC

* **AOF (Account Opening Form)**:
When you open a bank or trading account, you are asked to declare your **turnover** (business volume or income) as part of your profile. This helps the bank or broker assess your financial activity and risk profile.

* **Turnover Declared in AOF**:
This is the **estimated or actual turnover** of your business or trading activity that you disclose at the time of opening the account. It could be annual sales, business income, or trading turnover.

* **Turnover Declared in Trade KYC**:
**Trade KYC (Know Your Customer)** is a regulatory requirement for businesses and traders to provide detailed information about their business, including turnover. This turnover declaration is used to assess the legitimacy and scale of your trading or business operations.

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### Why is it important?

* Helps banks, financial institutions, and regulators understand your business size.
* Determines your eligibility for certain products or services.
* Ensures compliance with anti-money laundering (AML) and tax regulations.
* Helps in setting transaction limits and monitoring suspicious activity.

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### Example:

If you run a manufacturing unit with annual sales of Rs. 5 crores, you would declare this turnover in your AOF and Trade KYC. For a trader, it could be the total value of trades executed in a year.

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If you want, I can help you draft a sample turnover declaration or explain how to calculate turnover for these purposes!

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