Books of accounts for intraday traders

[Krushna]

Need to maintain books of account when income from business profession exceeeds rs 120000 or his total sales, turnover or gross receipt exceed rs 10 lakhs .

Income from biz/profession means net profit?

Total sales exceed 10 lakhs means total selling value? As that could easily exceeded by an intraday player even with a small amount in just few days. I am sure I am misunderstanding something here..

 

[nac]

Again this is very clear explanation of difference between scripwise and tradewise. However, above example gives rise to one doubt:
Suppose I buy one stock (Equity or Future) 10 qty at 100, then 10 qty at 110.
Then I exit it in 5 parts , say 4 at 98, 3 at 114 , 5 at 115, 3 at 117 at 5 at 120.
Then in such situations, how will it be calculated?

If you're trading intra day in equity, you don't have to calculate trade by trade. Your gross profit or loss at the end of the day is your turnover.

If you're trading futures, the calculation has to be done based on FIFO method.
4 * 98-100 = -8
3 * 114-100 = 28
3 * 115-100 = 45
2 * 115-110 = 10
3 * 117-110 = 21
5 * 120-110 = 50

Gross profit is 160; turnover is 176 (profit 168 + loss 8)

 

[nac]

Income from biz/profession means net profit?

Total sales exceed 10 lakhs means total selling value? As that could easily exceeded by an intraday player even with a small amount in just few days. I am sure I am misunderstanding something here..

Yes, net profit.
It's turnover for day traders.

I am not sure if it's okay not to maintain books even if t/o is less than 10L or income below 1.2L. If you're filing ITR4, you better maintain books. It's not something super complicated.

How many entries would be in a year for a retail trader?
You can very well skip the transactions which have reflected in your broker's ledger and bank statement. It's gonna be a mirrored entries. I would roughly guess about 100 entries or less a year.