Looking for CA for audit and tax preparation related to stocks trading - Bangalore

XUV-500

Well-Known Member
#11
Re: Looking for CA for audit and tax preparation related to stocks trading - Bangalor

hi
will you please tell turnover in following case-
Nifty one lot (25 qty ) 8300 call bought at 80 and sold ( squared off ) at 100.
 

canikhil

Well-Known Member
#12
Re: Looking for CA for audit and tax preparation related to stocks trading - Bangalor

hi
will you please tell turnover in following case-
Nifty one lot (25 qty ) 8300 call bought at 80 and sold ( squared off ) at 100.
If you go as per zerodha, turnover would be 25*100 = 2500

However, we dont agree with above and compute turnover as (100-80)*25 = 500
 

XUV-500

Well-Known Member
#13
Re: Looking for CA for audit and tax preparation related to stocks trading - Bangalor

If you go as per zerodha, turnover would be 25*100 = 2500

However, we dont agree with above and compute turnover as (100-80)*25 = 500
there is ambiguity the way turnover is calculated for Long options. I think zerodha is conservative in calculating turnover . There's considerable difference in turnover calculated with above 2 methods.
What will you suggest for a new trader willing to trade 1 lot a day ? 8% profit criteria will be very difficult
 

lemondew

Well-Known Member
#14
Re: Looking for CA for audit and tax preparation related to stocks trading - Bangalor

there is ambiguity the way turnover is calculated for Long options. I think zerodha is conservative in calculating turnover . There's considerable difference in turnover calculated with above 2 methods.
What will you suggest for a new trader willing to trade 1 lot a day ? 8% profit criteria will be very difficult
And to add to that If
buy 80 * 25
And sell 60 * 25

As per zerodha turnover = 60* 25 = 1500
As per nikhil turnover =(80-60) * 25 = -500

There is huge difference and would be deciding factor or whether to audit or not. Also I would like to ask the ca on notices being sent to zerodha users for not doing audit or 8% of turnover? How to deal with notices and on what criteria these notices were sent
 

canikhil

Well-Known Member
#15
Re: Looking for CA for audit and tax preparation related to stocks trading - Bangalor

And to add to that If
buy 80 * 25
And sell 60 * 25

As per zerodha turnover = 60* 25 = 1500
As per nikhil turnover =(80-60) * 25 = -500

There is huge difference and would be deciding factor or whether to audit or not. Also I would like to ask the ca on notices being sent to zerodha users for not doing audit or 8% of turnover? How to deal with notices and on what criteria these notices were sent
Dear Lemondew,

I have been doing F&O audits for past two years. All of my client's returns have been duly processed without defaults. Can't advise without knowing the exact text of the notice. However, in case where you wish to claim losses, audit becomes mandatory anyways. The question of what exactly is the turnover is something that wont be not part of the notice!
 

canikhil

Well-Known Member
#16
Re: Looking for CA for audit and tax preparation related to stocks trading - Bangalor

And to add to that If
buy 80 * 25
And sell 60 * 25

As per zerodha turnover = 60* 25 = 1500
As per nikhil turnover =(80-60) * 25 = -500

There is huge difference and would be deciding factor or whether to audit or not. Also I would like to ask the ca on notices being sent to zerodha users for not doing audit or 8% of turnover? How to deal with notices and on what criteria these notices were sent
with regards to the computation, turnover in my calculation will be 500 (not -500) as you need to consider only the absolute values.
 

newuser_RK

Well-Known Member
#17
Re: Looking for CA for audit and tax preparation related to stocks trading - Bangalor

Lemondew boss can you please expand on the income tax notices part? As in what types of notices to what type of traders were sent?
 

lemondew

Well-Known Member
#18
Re: Looking for CA for audit and tax preparation related to stocks trading - Bangalor

Thanks. Total of favorable & unfavorable differences. Thats what I think you are applying to options as well.

What would you suggest someone who has a turnover of 50 lacs and a profit of 50000 Rs. Audit or no audit.

What would be the taxable income in this case in case of that.


Dear Lemondew,

I have been doing F&O audits for past two years. All of my client's returns have been duly processed without defaults. Can't advise without knowing the exact text of the notice. However, in case where you wish to claim losses, audit becomes mandatory anyways. The question of what exactly is the turnover is something that wont be not part of the notice!
 

lemondew

Well-Known Member
#19

XUV-500

Well-Known Member
#20
Re: Looking for CA for audit and tax preparation related to stocks trading - Bangalor

Thanks. Total of favorable & unfavorable differences. Thats what I think you are applying to options as well.

What would you suggest someone who has a turnover of 50 lacs and a profit of 50000 Rs. Audit or no audit.

What would be the taxable income in this case in case of that.
Question here will be how much is his Total income.
IMO if his 'total' income is <2.5 lacs i.e. below limit, then do not have to do audit even though profit is <8%. Am i right Mr Nikhil ?
( This is what i understood from Zrodha blog and I MAY BE WRONG)
 

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