Dear Mr. Sudarshan,
How does one determine turnover for fno for audit purposes?
1 MINI PURCHASED 1,00,000/-
SOLD NEXT DAY 1,00,500/-
hence turnover is 500/-
1 mini purchased 1,00,000/-
sold next day 99,500/-
hence turnover is ALSO 500/-
Therefore total turnover for AUDIT PURPOSE IS 500*2=1000, if no then what is the turnover for audit purposes ONLY.
but PROFIT =0.
Assume the above rates are inclusive of stt, sd etc in both buy and sale.
Please give your views as we are nearing the last date for filing the returns, sorry for any incovenience and THANK YOU.
My Notes: This question needs a quick answer. I take the difference of all derivatives transactions as the turnover. The net result of a derivative transaction can be negative or positive. We have to remove the minus sign and take the total of absolute values. Example:
Difference in trade 1 = + 500. Absolute value 500
Difference in trade 2 = -500 Absolute value 500
Total turnover = 1,000
I am not a tax consultant and my advice is based on my understanding of derivatives transactions. Please consult a tax adviser for correct information.