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Options and futures

Tax queries 177 views 1 replies

As per my understanding,

For Options - Turnover = Absolute Profit + Sales Value

For Futures - Turnover = Absolute Profit.

My doubt is, Is this turnover just to check whether tax audit is applicable or not? Should this be the turnover to be reflected in the Profit and Loss account as well or should only the sale value be reflected as sales figure in the P&L a/c?

Replies (1)
According to me it is just to check the applicability of tax audit. Income tax dept. cannot change the actual turnover of the assessee or prescribe any manner to calculate the turnover of the assessee. So u should take the actual turnover as informed by the broker in its contract note.


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