NEW GUIDELINES FOR F&O CALCULATIONS

ICAI has also bring some changes in the calculation method of Turnover which fulfils the requirement of the act. Calculation of the premium will be as follows according to the updated GN on Tax audit U/s 44AB issued by the ICAI.

(i)   The total of favourable and unfavourable differences (Profit/Loss) shall be taken as turnover.

(ii)    Premium received on sale of options is also to be included in turnover. However, where the premium received is included for determining net profit for transactions, the same should not be separately included.

(iii)    In respect of any reverse trades entered, the difference thereon, should also form part of the turnover