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Balance sheet for share trading

Sahil garg (Accountant) (52 Points)

08 June 2021

dear seniors
i have a balance sheet of share trading in future and option which show turnover 3crore. and in itr 3 unde business and profession head we should have to show turnover umder sale or where please tell me

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15 Replies

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 08 June 2021

I think it falls under schedule bp- computation of income from business or schedule cg

https://cleartax.in/s/itr3

Sahil garg (Accountant) (52 Points)
Replied 08 June 2021

Yes i know it falls under bp. but where we put turnover value.
in trading account or anywhere else please tell me in breifly

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 08 June 2021

Hello, if you are using turnover from tax act, I don’t know the presentation sry. But if this itr 3 is filled as per companies act, then on page 5, revenue from operations is the appropriate fill in the blank

https://www.incometaxindia.gov.in/forms/income-tax%20rules/2019/itr3_english.pdf

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yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 08 June 2021

Sry your correct, in trading account.

veerendar singh (tax consultant) (3301 Points)
Replied 08 June 2021

Show it as sales

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Sahil garg (Accountant) (52 Points)
Replied 08 June 2021

So what is our purchase.
because we calculate turnover not as sale value we calculate as per rules in income tax

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veerendar singh (tax consultant) (3301 Points)
Replied 08 June 2021

What are those income tax rules.
please quote section number or rule number.

as per icai guidelines there is a different method of calculating sales turnover.
if such method is followed then you may enter amounts in purchases or other expenses. do it anyway to arrive at the correct net profit.
only turnover and net profit matters

Ankit Neema (2742 Points)
Replied 08 June 2021

Please elaborate you question,

for your earlier question:
trading in F &o is business income , Show it in a PGBP head.
As you turnover exceed 1Cr, there is need of Tax Audit also,
Turnover need to be shown as SALES.

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Sahil garg (Accountant) (52 Points)
Replied 08 June 2021

As sale we mentioned turnover in sale so what will be our purchase.

because if we look up as per law in delivery based trading we should treat only difference of sale and purchase as our turnover. for ex if we purchase 30000 and sale 40000. so 10000 is our turnover so what will be our purchase

1 Like