Table of Contents
- 1 How is F&O income taxed?
- 2 How is F&O turnover calculated?
- 3 What is turnover in case of intraday trading?
- 4 How is intraday trading turnover calculated?
- 5 How do you calculate stock turnover?
- 6 Is audit required for F&O trading?
- 7 What is turnover tax in India?
- 8 How turnover is calculated in case of F&O transactions?
- 9 What is the income tax rate for F&O transactions?
- 10 How do you compute income from F&O trading?
How is F&O income taxed?
The presumptive income @ 6\% of his turnover is Rs 1.8 lakhs which is more than Rs -5, 400. Further, the total taxable income is Rs. 15 lakhs which are greater than the basic exemption limit of Rs 2.5 lakhs….Income (loss) from F&O.
Loss from F&O | Rs 3,00,000 |
---|---|
Less: expenses of F&O | Rs 1,35,400 |
Total F&O loss | Rs 4,35,400 |
How is F&O turnover calculated?
So if you buy 25 units or 1 lot of Nifty futures at 8000 and sell at 7900, Rs.2500 (25 x 100) the negative difference or loss on the trade is turnover. In options, if you buy 100 or 4 lots of Nifty 8200 calls at Rs.20 and sell at Rs.30. Firstly, the favourable difference or profit of Rs 1000 (10 x 100) is the turnover.
How do I report F&O income in ITR?
ITR to be filed in case of Income/Loss from Futures & Options. The income/loss arising from trading in F&O Transactions would be treated as a Business Income/Loss and therefore ITR 4 would be applicable in this case.
What is turnover in case of intraday trading?
Turnover in the case of Intraday Trading is Absolute Turnover, Absolute Turnover is the Sum total of absolute profits minus losses made on daily transactions.
How is intraday trading turnover calculated?
Turnover = Absolute Profit In case of Intraday Trading, the Turnover equals Absolute Profit. Absolute Profit is the sum of all positive and negative differences from all the transactions.
How do you calculate turnover on a balance sheet?
On the balance sheet, locate the value of inventory from the previous and current accounting periods. Add the inventory values together and divide by two, to find the average amount of inventory. Divide the average inventory into COGS to calculate inventory turnover.
How do you calculate stock turnover?
Share turnover is a measure of stock liquidity, calculated by dividing the total number of shares traded during some period by the average number of shares outstanding for the same period.
Is audit required for F&O trading?
If the turnover from F&O trading is more than Rs. 1 crore in your case, tax audit is applicable and you should get accounts audited by a Chartered Accountant and file Tax Audit Report in Form No. 3CB-3CD to the Income Tax Department. Further, if the turnover is more than Rs.
How do intraday traders pay tax?
Gains earned from intraday trading are treated as business income. It is added to your salary and taxed according to the income tax slab you fall in. So if you’re wondering that intraday trading taxable under which head, the answer is business income. Gains earned from long term investing are treated differently.
What is turnover tax in India?
A turnover tax is similar to VAT, with the difference that it taxes intermediate and possibly capital goods. It is an indirect tax, typically on an ad valorem basis, applicable to a production process or stage. For example, when manufacturing activity is completed, a tax may be charged on some companies.
How turnover is calculated in case of F&O transactions?
In case of F&O transactions, the total of all contracts sold is not considered as the total turnover. The turnover is computed by taking into account the total of all favourable and unfavourable trades. Mr B enters into two transactions during the year.
What is turnover in income tax?
“The Turnover is net of all positive and negative income from various transaction and not total of all Sales transaction.So if your Net Income > 1 Crores rs., you are liable to tax audit.” “The turnover in such types of transactions is to be determined as follows:
What is the income tax rate for F&O transactions?
As the payment is always received in banks in case of F&O transactions, they can disclose the income as 6\% of turnover. In case the small trader feels that his income is less than 6\%, he would have to shift to the normal scheme of taxation and prepare all books of accounts and keep copies of all invoices.
How do you compute income from F&O trading?
There are two ways to compute income from F&O trading: Normal system of computation: Income = sales – purchase – other expenses – depreciation Presumptive system of computation: Income = assumed percentage of sales I. Normal system of taxation