Urgent Query on Gross Receipts for F&O Income in ITR4

Dear Balbir,

As per various judgements and clarification issued by the ICAI the turnover in case of F & O is taken as Profit + Loss. Hence your will have to take account all your profits + losses on Mark to Market basis (and not the contract value) and for options the options premium is taken as the turnover and add all of them and check whether they cross Rs. 40 lakhs or not. Looking by the above it seems that you have exceeded Rs. 40 lakhs in options and hence would be liable for audit u/s 44AB and you turnover would be Rs. 4.25 + 4 + 20 + 25.5 = 53.75 lakhs though your profit / (loss) is different. For the purpose of ITR the gross receipts would be .25 - 5.50 = -5.25 lakhs.

Thank You Aditya.

I would like to say that for premium on options, most (99%) of the contracts were squared using reverse transactions and the very few ones (3-4 contracts, max 1-2 lacks) were buy options which expired without any return, so only the difference was pocketed in 99% of cases.

I had read in the guidance note that Only the Premium received from options sale will be added to turnover for 44AB as per the following newsletter (icai.org/resource_file/9584NewsLetter_March06.pdf) 

In this case isn't  the turnover for 44AB = Futures profit (4.25) + Futures Loss (4) + Options Premium Received (20) = 28.25 Lacks ?  

With regard to MTM, expeneses, brokerage, STT, daily P/L on a day to day basis by looking at ledger entries and the books for the trading account the sum total is about 30 Lacks.

If on ITR, I put Gross Receipt = -5.25 Lacks, and no additional expense, is the other items should be as below ?

Gross Profilt = -5.25 Lacks

Expenses = 0

Net Profit = -5.25 Lacks