Fire your tax related queries and i would get it solved!!!

[traderwa]

if income is below 5L,do I need to file return?

 

[traderhardrock]

if income is below 5L,do I need to file return?

are you a super senior citizen

 

[Raj232]

https://help.cleartax.in/hc/en-us/a...lculating-turnover-for-Future-Option-traders-
Calculating turnover for Future & Option traders
Calculation of turnover in case of F&O Trading
Determination of turnover in case of F&O is one of the important factors for every individual for the income tax purpose. Turnover must be firstly calculated, in the manner explained below:

1. The total of positive and negative or favourable and unfavourable differences shall be taken as turnover.
2. Premium received on sale of options is to be included in turnover.
3. In respect of any reverse trades entered, the difference thereon shall also form part of the turnover.

Here, it makes no difference, whether the difference is positive or negative. All the differences, whether positive or negative are aggregated and the turnover is calculated.
For computation of turnover of futures, the total of positive and negative or favourable and unfavourable differences shall be taken as turnover.
Similar will be the case pertaining to speculation income the total of positive and negative or favourable and unfavourable differences shall be taken as turnover.
Expenses
Expenses such as postage, conveyance and telephone, incurred for carrying on the business can be claimed as business expenses. You can also claim depreciation on assets used for the business or profession.


A clear Cut Example is also provided by CAClubIndia:
https://www.caclubindia.com/experts/calculation-of-turnover-from-trading-in-options--2362384.asp

Please review my calculation of turnover from option trades for the purpose of applying provisions of sections 44AB and 44AD.

All the trades assume quantity traded as one.

1. Short Sell option contract1 for value Rs 100. The option expired worthless (hence effective buy price = 0). Turnover = ABSOLUTE (100 - 0) = 100
2. Buy option contract2 for value Rs 50. The option expired worthless (hence effective sell price = 0). Turnover = ABSOLUTE(0 - 50) = 50
3. Short Sell option contract3 for value Rs 100. Five days later, Buy it back for Rs 10. Turnover = ABSOLUTE(100 - 10) = 90

Total Turnover = 100 + 50 + 90 = 240 Please provide the correct calculation if I am making a mistake.

A: You have correctly calculated the turnover.

 

[TraderRavi]

based on the guidance note of ICAI, following items should be considered to constitute turnover:-

• The total of positive and negative differences
• Premium received on sale of options is also to be included in turnover
• In respect of any reverse trades entered, the difference thereon But not the total value of contract.

https://help.cleartax.in/hc/en-us/a...lculating-turnover-for-Future-Option-traders-

https://taxguru.in/income-tax/how-t...audit-us-44ab-of-the-income-tax-act-1961.html

 

[Raj232]

based on the guidance note of ICAI, following items should be considered to constitute turnover:-

• The total of positive and negative differences
• Premium received on sale of options is also to be included in turnover
• In respect of any reverse trades entered, the difference thereon But not the total value of contract.

https://help.cleartax.in/hc/en-us/a...lculating-turnover-for-Future-Option-traders-

https://taxguru.in/income-tax/how-t...audit-us-44ab-of-the-income-tax-act-1961.html

Premium received on sale of options is also to be included in turnover : Its says that the premium received on sale of options should be included in the turnover calculation. (it does not say that it should be added) .i.e. where options are sold at a premium and expire worthless (i.e. Zero).

Refer to the calculation by CAClubIndia as per previous post. .. It will become crystal clear

 

[TraderRavi]

Premium received on sale of options is also to be included in turnover : Its says that the premium received on sale of options should be included in the turnover calculation. (it does not say that it should be added) .i.e. where options are sold at a premium and expire worthless (i.e. Zero).

Refer to the calculation by CAClubIndia as per previous post. .. It will become crystal clear

nope. as per this guideline if premium received is 7500 (lets say 1 lot nifty at 100 Rs) and then bought back at 500 Rs. . the profit is 7000 Rs.
total turnover is 7500 + 7000 = 14500.

but if a buyer does this transaction then turnover = Rs 7000 only ? (as no premium is received)

The example you provided is by querist who is asking if its correct or not.

 

[Raj232]

The example you provided is by querist who is asking if its correct or not.

Bhai .. dont make your own laws .. queryist asked, and expert answered in the link itself ..there is no ambiguity there.

 

[TraderRavi]

Bhai .. dont make your own laws .. queryist asked, and expert answered in the link itself ..there is no ambiguity there.

and one of those so called expert is posting negative turnover in same thread .
bhai unka jyada bharosa mat karo.

waise bhi kya karna hai. buy sell difference ko hi kar lo , govt wants only taxes , TO se use matlab nahi.

 

[canikhil]

Bhai .. dont make your own laws .. queryist asked, and expert answered in the link itself ..there is no ambiguity there.

there are many Ca club posts with wrong responses. So do not depend on it too much. There are a few experts there who require correction on practically each of their responses.

As I said earlier in response to a different post, there is no difference between the term included and added. It has the same meaning as far as turnover computation is concerned.

Alternatively, it would be good to understand what you mean by included and how differently it plays

 

[john302928]

Hi I have a query.Could any CA help me on this. thanks in advance
If we withdraw 2lakh from 5 lakh invested in a business, should we consider this 2lk as income in the personal Income sheet or we should not? or we just have to increase the cash in hand by 2lk in the personal balancesheet ?
fyi, share of profit and remuneration from business are added as income in personal income sheet
fyi
business filing ITR is done separately and personal filing ITR is done separately
This 2lk is shown as withdrawal in business balance sheet