Derivatives transactions

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721 Points Posted on 31 March 2021
I have following futures transactions

profit Rs. 10 lakh

loss Rs. 3 lakh.

so turnover 13 Lakhs.

can I show my profit at 8 % i.e. 1.04 lakhs and pay tax,

whereas my actual profit is 8 lakhs
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On 31 March 2021 at 21:54 Report
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Quick Summary
This discussion clarifies how to handle tax on derivatives transactions, specifically futures. The total profit and loss from futures trading is considered the turnover. It's confirmed that presumptive taxation under Section 44AD can be applied to this turnover, allowing for tax calculation based on a percentage of the turnover rather than the actual profit.

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2742 Points Posted on 05 April 2021
I think you cannot offer a lower profit.
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On 05 April 2021 at 14:15
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403 Points Posted on 15 July 2021
Yes Sushant ji, the absolute profit (here 13L) will be your Turnover and provisions of 44AD presumptive taxation can be applied.
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On 15 July 2021 at 15:58

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