Calculation of turnover from trading in options
This query is : Resolved
13 August 2016
Respected Experts,
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.
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.
14 August 2016
You have correctly calculated the turnover.
Message likes :
2 times
15 August 2016
Experts, Any more opinions?
17 August 2016
Net result of the transaction is the turnover. Here transaction
1 turnover Rs 100/-
2 Turnover -50
3 Turnover 90
Net Turnover 140
1 turnover Rs 100/-
2 Turnover -50
3 Turnover 90
Net Turnover 140
17 August 2016
------------------------------------------------------------------------------------------------------------------------------------------------------
17 August 2016
Anil Kumar Sir, Net result of the transactions is profit or loss, not turnover. Turnover never has a negative sign. If I make two transaction making a profit of Rs 100 in one and loss of Rs 100 in another, the total turnover as per your calculation would be zero, which is not the case. As soon as you I make one transaction, the turnover becomes more than zero and it increases with every new non-offsetting transaction.
Message likes :
1 times
20 August 2016
Dear Anil Kumar Jee and Seetharaman jee I apologise for wrong reply, both of you are correct
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Is online PGCE worth it?
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
Trending Online Classes
CAclubindia
