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canikhil Saab,
Please also clearly mention what constitutes turnover for arriving at threshold limit of Rs 1 crore.
There are various interpretations regarding turnover. If this is clearly mentioned, then hope this
issue can be hopefully closed.
 

canikhil

Well-Known Member
canikhil Saab,
Please also clearly mention what constitutes turnover for arriving at threshold limit of Rs 1 crore.
There are various interpretations regarding turnover. If this is clearly mentioned, then hope this
issue can be hopefully closed.
Sir,

I have been trying to close this issue for forever. My only problem is that I am really bad at indexing my own past responses.

So for sake of your convenience, the turnover is a very simple concept.

For Intraday trades, the turnover is sum of absolute difference of sell and buy side of each transaction.

So if you buy Reliance at Rs 500 and Sell at Rs 495, the turnover is Rs 5.

The same applies if you buy at 500 and sell at 505.

The total turnover of the above two transactions would be Rs 10 and loss will be Zero.

The same rule applies for Futures too.

So if you buy Nifty one lot at Rs 500 and Sell at Rs 495, the turnover is Rs 5.

The same applies if you buy at 500 and sell at 505.

The total turnover of the above two transactions would be Rs 10 and loss will be Zero.

For Options, it is a bit tricky. Here you have to add the sum of absolute difference of sell and buy side of each contract and the sell side.

So if you buy an option at 10 and sell at 11, then the turnover is Rs 1 plus Rs 11 ie Rs 12

However, if you buy at 10 but sell at 9, then the turnover is Rs 1 plus Rs 9 ie Rs 10

The turnover here will be Rs 22 and loss will be Zero.

Key thing to note is that ideally the turnover should be computed at each transaction level and not on the gross levels. While Zerodha follows the above principle, it does it at gross levels. For e.g.: So if you go by the above example of reliance, the turnover should be 10. However, Zerodha will most probably give you turnover of Rs Zero as they will count Buy as 1000 and sell as 1000.
 
canikhil Saab,
What about short term and long term transactions? Is it total value of sell side if there is profit and total value of buy side
if there is loss? Hope we need not add absolute profit or loss in this case. I hope I am not wrong.
 

canikhil

Well-Known Member
canikhil Saab,
What about short term and long term transactions? Is it total value of sell side if there is profit and total value of buy side
if there is loss? Hope we need not add absolute profit or loss in this case. I hope I am not wrong.
they dont form part of the turnover.
 
For Intraday trades, the turnover is sum of absolute difference of sell and buy side of each transaction.

So if you buy Reliance at Rs 500 and Sell at Rs 495, the turnover is Rs 5.
here if i buy 100 shares of reliance then turnover will be Difference X Quantity of shares
so
5X 100=500
500 will be my turnover?
 
For Options, it is a bit tricky. Here you have to add the sum of absolute difference of sell and buy side of each contract and the sell side.
how much is my option turnover?

if i buy BNF 27500CE at 200 and sold at 240 with 2 lots

Buy-sell difference X share size=40X80=3200

here,3200 is normal turnover
what I have to add here?
1)sell price which is 240 or
2)total value of sell side which is 240X80=19200

so my option turnover is-
1) 3200+240=3440??
or
2)3200+19200=22400??
 

john302928

Well-Known Member
Hi CA Nikhil Bro,
In the incometax login account, we found that they have asked for the below information. we have never traded in commodities market. But its mentioned contract of Rs10lk or more in commodities exchange. 1.What should we select for that?
2. Is STT-02 short term trading transactions?
3.Is STT-03 intraday trading transactions?

Please help. Thanks

1533628664006.png
 
Last edited:

john302928

Well-Known Member
Hi CA Nikhil Bro,
In the incometax login account, we found that they have asked for the below information. we have never traded in commodities market. But its mentioned contract of Rs10lk or more in commodities exchange. 1.What should we select for that?
2. Is STT-02 short term trading transactions?
3.Is STT-03 intraday trading transactions?

Please help. Thanks

View attachment 27215
Dear canikhil bro, could you please respond to this query? Thanks in advance
 
Sir,

I have been trying to close this issue for forever. My only problem is that I am really bad at indexing my own past responses.

So for sake of your convenience, the turnover is a very simple concept.

For Intraday trades, the turnover is sum of absolute difference of sell and buy side of each transaction.

So if you buy Reliance at Rs 500 and Sell at Rs 495, the turnover is Rs 5.

The same applies if you buy at 500 and sell at 505.

The total turnover of the above two transactions would be Rs 10 and loss will be Zero.

The same rule applies for Futures too.
So if you buy Nifty one lot at Rs 500 and Sell at Rs 495, the turnover is Rs 5.

The same applies if you buy at 500 and sell at 505.

The total turnover of the above two transactions would be Rs 10 and loss will be Zero.

For Options, it is a bit tricky. Here you have to add the sum of absolute difference of sell and buy side of each contract and the sell side.

So if you buy an option at 10 and sell at 11, then the turnover is Rs 1 plus Rs 11 ie Rs 12

However, if you buy at 10 but sell at 9, then the turnover is Rs 1 plus Rs 9 ie Rs 10

The turnover here will be Rs 22 and loss will be Zero.

Key thing to note is that ideally the turnover should be computed at each transaction level and not on the gross levels. While Zerodha follows the above principle, it does it at gross levels. For e.g.: So if you go by the above example of reliance, the turnover should be 10. However, Zerodha will most probably give you turnover of Rs Zero as they will count Buy as 1000 and sell as 1000.
Nikhil Sir
Can you please explain the reason behind, addition of sale value of option traded, in total turnover, when the trade is complete, I mean when both buy and sell legs has been completed.
Either TO should be the total of absolute loss and profit (as in case of futures) or total sale value of option
but why the addition of 2, when sale value already includes profit or loss of the trade .

Isnt it ridiculous
or a case of bad law and rules drafting.
 

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