Future Options profit and trading profit

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nitin shah

nitin shah (Querist)
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21 July 2008 Future & Options Profit to be soon under which head and when it become liable to Tax Audit and if yes when

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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21 July 2008 Profit from Future and Options is to be shown under the head of Income from Business and Profession.
In case of future and options Tax Audit under section 44AB of the Income Tax Act is to be conducted in case the turnover from such business is 40lacs or more. Turnover in such business is

• The total of positive and negative differences , plus
• Premium received on sale of options is also to be included in turnover ,plus
• In respect of any reverse trades entered, the difference thereon