How to show Intraday Turnover in Schedule Trading or P&L A/C ??
I am not talking about 'No Account Case'.
Intraday Turnover is absolute profit which is too high. if we show Absolute profit as a turnover in Trading account and claim expenses. it is showing huge and unreal profit.
Plz guide.. it's a confusing.
As per Section 5.12 of Guidance note on tax audit under Section 44AB by ICAI (Institute of chartered accountants of India, has a guideline on how turnover can be calculated.
For Speculative transactions (intraday equity trading)
For all speculative transactions, aggregate or absolute sum of both positive and negative differences from trades is to be considered as a turnover. So if you buy 100 shares of Reliance at 800 in the morning and sell at 820 by afternoon, you make a profit or positive difference of Rs 2000, this Rs.2000 can be considered as turnover for this trade.
Note the difference of absolute values, and sum of both positive and negative differences.
CAclubindia
