In case of Derivative transactions, the total of favourable and unfavourable differences shall be taken as turnover, as per ICAI Guidance Note.
My query is how to reflect the same in ITR 4 in the Profit & Loss Account section.
For example, if total of favourable difference is Rs. 18 Lacs & total of unfavourable difference is Rs. 23 Lacs, then Tax Audit is applicable as turnover is Rs. 41 Lacs. But the net position is LOSS of Rs. 5 Lacs.