Accounting of furtures & options

Sir,

As we all know Turnover for F&O is positive and negetive differnce. Now suppose Mr. x in a financial year get only profit and earn rs. 50 lac. then it means turnover is rs 50 lac and he can file return in 44ad with profit of 4 lac (8% of 50lac).  is it a loopwhole?? and if in above instance he make loss of rs 50 Lac thn also he has to pay tax on 4 lac. or if he opt for audit then how much expenses he claim ( 1 crore). in his books of accounts for arriving at loss of rs  50 lac??  kindly reply or disscuss it.. thanks.

Replies (4)
I think Calculation of turnover is only for audit purpose. It will not effect your profit, your profit will remain 50 lakhs i.e. Net of gain minus loss. . . . But Not sure
then how will you present your financial statements??? how to maintain books of accounts??

https://taxmantra.com/gross-turnover-speculative-transactions-fo-derivatives-audit-factors.H T M L/

May be i am totally wrong..........

https://trak.in/tags/business/2012/07/09/tax-return-filing-futures-options-fo-trades/

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