Applicability of 44ab for the business in dealing in shares

(A) Speculative transaction:

- The aggregate of both positive and negative differences is to be considered as the turnover.
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(B) Derivatives, futures and options:

- The total of favourable and unfavourable differences shall be taken as turnover.

- Premium received on sale of options is also to be included in turnover.

- In respect of any reverse trades entered, the difference thereon, should also form part of the turnover.
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(C) Delivery based transactions:

- The total value of the sales is to be considered as turnover (in case such transactions are in the course of business).
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[To read in details, refer Para 5.14 of the Guidance Note on Tax Audit u/s 44AB (Revised 2014 Edition) issued by the ICAI.]