Income tax FnO Loss

 

sir, please guide F& O loss set off Ageist Partnership Salary ******* Salary 6 lakh & Loss 10Lakh 4 Lakh C/f Second F & O is profit or Loss treated as business income can Audit Applicable (Turnover Bess ) 

Replies (5)

1. Yes.

2. Depends upon turnover of F&O transactions...

sir,

F & O 2 or 3 Transaction cross 1 Crore  Then Audit !!!!

or

F& o Margin money turnover cross 1 crore after audit 

or   

Sale & Purchase  (proft or loss  ) turnover cross 1 crore 

please explain in details    its  very confusion  about F&  O income  

 

For the purpose of determining the turnover in case of future and options, based on the guidance note of ICAI , following items should be considered to constitute turnover:-

  •  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.

For details refer:  fo-trader-turnover-return-filing

sir,

we can understand  please  cleafication  with example  

My total  F & o Turnover Buy Side Rs  23 .41 Crore  (Future  & option both Mix )   readymade statemnt from brokar  no any accounts maintane 

                                        Sale Side Rs.23.32 Crore   Net Loss   9.38 lakh

& Partnership Salary Income                                                        2.00 lakh

other Business Income                                                                  2.00 Lakh

                                                                                                 ---------------

                                                                                               6 Lakh Loss C/f  Next year   [but please explain can Audit Book]

 

For calculation of sec. 44AB, the books are required to be prepared based on differencial amount and not total sales value......

By overview, audit will be applicable in your case, as it seems, net turnover would be more than 1 cr.

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