One of the client is trading in stock market he has income from Speculations as well as F&O.
His turnover in speculation comes to 1.6 cr (Sum of Favorable and Unfavorable trades) and in Futures his Turnover is 55 lakhs (Sum of Favorable and Unfavorable trades) and in options he has turnover of 67 lakhs (Sum of Favorable and Unfavorable trades),I have 3 queries;
1. How to calculate T/O in case of F&O as I am confused with some of the articles as they say only Gross sale amount is to be considered in case of options.
2. Do I need to submit Tax Audit Report?
3. My actual profit and as calculated under Income Tax is different in case of speculation and F&O (as turnover is Sum of Favorable and Unfavorable trades)
CAclubindia
