Tax audit turnover limit for trader in shares

Turnover limit for normal trading in shares in equity segment is Rs. 1 crore of sale price of shares.

The turnover of derivative transactions, futures and options are determined as follows:

(i) The total of favourable and unfavourable differences shall be taken as turnover.

(ii) Premium received on sale of options is also to be included in turnover.

(iii) In respect of any reverse trades entered, the difference thereon, should also form part of the turnover.

I agree with RAJAGOPALAKRISHNAN R.

In addition to it, intraday trading is assessed as speculative income and its turnover is calculated as the total of positive and negative differences.