How to determine income tax on F&O , currency and Commodities

This query is : Resolved

Daya (Querist)
Follow

01 December 2024 whether Sale minus purchase is profit/loss.
Sum of profit and loss is turnover.
and Deduct security transaction tax and CTT and calculate capital gain.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

02 December 2024 (i) The total of favorable and unfavorable 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.
Absolute Turnover = Profits + Absolute Losses
F&O traders can deduct business expenses from their F&O income
Futures and Options is a non speculative business & not capital gain.