tax slab for nifty and stock future trading ?

[kiran.chekka]

Hi friends,

pls let me know iam trading in nifty & stock futures, and my annual turnover in this FY will be more than 40 lakhs , should i have to file Tax Audit or normal tax return wih profit/loss will be ok.

 

[hitesh]

Hi friends,

pls let me know iam trading in nifty & stock futures, and my annual turnover in this FY will be more than 40 lakhs , should i have to file Tax Audit or normal tax return wih profit/loss will be ok.

The meaning of turnover for in case of transactions in Futures and Options of shares is not defined under the I T Act However, In case of Futures and Option- the difference on which the contract is purchased or sold is important.

The Turnover for Audit should be calculates as follows:-

Turnover = profit + loss + premium on options recd + premiums paid.

For e.g. Profit 30 L + Loss 35 Lakh = Turnover 65 Lakh Tax Audit Reqd. Net Loss = Rs. -500,000.

Note : Audit Limit is Rs. 60 L from current financial year.

In other words:-
The total of positive and negative differences of Future Contracts, plus
Premium received on sale of options plus
Premium Paid on Purchase of Options

I hope its clear.