11 June 2021
Dear Professional Colleagues, I have analyzed FnO Trading and extracted turnover (by summing up positive and negative values) as 16.8 lakhs (Positive diff comes to 9.2 lakhs and negative diff comes to 7.7 lakhs). Total Sales (Margins) as per trade book comes to Rs.2.05 cr and Total purchases comes to Rs.2.035 cr. Hence Gross Profit is Rs.1.5 lakhs only, after deducting STT, Brokerage, GST etc, net profit comes to Rs.1.23 lakhs. My question is how above to be presented in ITR P&L, a. GP of Rs.1.5 lakhs on credit side and all other expenses like brokerage, GST, STT etc on Debit side and to show net profit of Rs. 1.23 lakhs OR b. To show sales of Rs.2.05 cr and purchased of Rs.2.035 cr and then show GP, followed by above exp and then NP OR c. To show positive diff of 9.2 lakhs as sales and negative diff of 7.7 lakhs as purchased and then GP, exp as above and NP Any other method to calculate the above. Kindly Suggest.
11 June 2021
File ITR 4 and opt for 44AD declare 6% profit (all bank transaction) on turnover of 16.80 lacs (total of positive and negative). It's simple no need of p and l and balance sheet.
11 June 2021
Thank you sir for your valuable reply. Just want to confirm (Not for this example) if at all I have to prepare P&L then which method would be appropriate (In the above example's context can you explain please)
11 June 2021
Show income of Rs.1.5 lakhs on credit side and all other expenses like brokerage, GST, STT etc on Debit side and to show net profit of Rs. 1.23 lakhs
CAclubindia
