How to compute turnover of f and o?

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The turnover for F and O is to be taken as: The total of positive and negative differences , plus Premium received on sale of options is also to be included in turnover ,plus In respect of any reverse trades entered, the difference thereon But not the total value of contract.

Can you please explain with respect to this case how the turnover should be taken?

FUTIDX NIFTY 26FEB2015
Transc date	TR TYPE	BUY	SELL	RATE	NET AMOUNT
09/01/2015	C	200		8310.3	-1662060.00
09/01/2015	O		200	8310.3	1662060.00
09/01/2015	C	200		8366.45	-1673290.00
12/01/2015	O		200	9409.6	1881920.00
22/01/2015	C	200		8409.6	-1681920.00
22/01/2015	O		200	8366.7	1673340.00
22/01/2015	C	200		7366.7	-1473340.00
22/01/2015	O		200	8358.05	1671610.00
28/01/2015	C	200		8559.55	-1711910.00
26/02/2015	O		200	8559.55	1711910.00
				Net profit/loss	398320.00

This is just for one month. should the turnover be 398320/-?

Bec if i take all the + and - figures for each date, it will cross 1 crore.

Replies (8)

CA Mehul Chudasama

Chartered Accountant

593 Points Posted on 08 January 2016

just pass one Entry of Rs.398320/-

Guest

Posted on 08 January 2016

So the turnover should be398320/-?

CA Mehul Chudasama

Chartered Accountant

593 Points Posted on 08 January 2016

Yes You Have To Credit P & L Account With This Amount

U S Sharma

glidor@gmail.com

21670 Points Posted on 08 January 2016

in F&O trading the turnover is calculated as per the premium credit / debit only, without taking the contract value in gross

follow your bank statements, for actual calculation.

A S G A Y HAMDANI

Accountant

22 Points Posted on 08 January 2016

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Minesh Rawat

Article

211 Points Posted on 08 January 2016

Yes Madhavi I have rightly understood the things....for deciding turnover of F & O u/s 44AB u r rightly going

Minesh Rawat

Article

211 Points Posted on 08 January 2016

If it exceeds 1 crore then tax audit will become mandatory

Prabhakaran

Accounting

58 Points Posted on 09 January 2016

FOR FUTURE TRADINNG

if you buy 25 units or 1 lot of Nifty futures at 8000 and sell at 7900, Rs.2500 (25 x 100) the negative difference or loss on the trade is turnover.

FOR OPTION TRADINNG

In options, if you buy 100 or 4 lots of Nifty 8200 calls at Rs.20 and sell at Rs.30. Firstly, the favorable difference or profit of Rs 1000 (10 x 100) is the turnover. But premium received on sale also has to be considered turnover, which is Rs 30 x 100 = Rs 3000. So total turnover on this option trade = 1000 +3000 = Rs 4000.