Intraday Trading Confusion

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.

Sir, My question is how to show in Trading or P&L account of itr3. As per your example, turnover is 2000.
should we mention 2000 in sales or actual sale 82000 and actual purchase 80000. plz clarify.

Rs. 2000 as sales i.e. Turnover

Rs. 2000 as sales i.e. Turnover

Had there been loss of 1000 i.e Rs. -1000 net value, in that case the turnover for the transaction would have been Rs. 1000/- (i.e. Absolute value.)

Considering both transactions together, the total TO is Rs. 3000/- while profit is Rs. 1000/-

Thanks for response.. but how profit will adjust.. Suppose 2 intraday transaction.. bought 100 reliance at 800 and sold at 820 and next day bought 100 hdfc at 500 and sold at 450. and total expenses 500.
now turnover is 7000 but loss is 2500.
If we show 7000 as a sales.. how to get -2500.
Turnover 7000
Expenses 500
Loss 2500..
how to show in ITR3..
I can fill this in no account case table 65.. but what if I am filing Trading or P&L..
plz clarify.. it's confusing..

First of all the turn over in the above case is 7000/- correct.

But loss is : Rs. 2000- Rs. 5000 = Rs. -3000/-

Expense of Rs. 500 will go under expenses.

Here this income generally declared under no account case, with minimum 6% profit margin. (Let there be loss)

Or otherwise, (in case of loss/ or profit less than 6%), tax audit compulsory. So the auditor certifies the loss after verification of all the transaction details.

But as per your question, the purchase of Rs. 10,000/- filled to arrive at the final profit/loss amount (Loss declaration with accounts without audit not experienced till date).

Loss was mentioned after expenses. Thanks for reply all the way. I want to know how to show in P&L if we are not using No Account Case. even in case of audit, books have to maintain and P&L and Balance sheet required. how to fill in that case. anyways thanks.

 Already replied, please read the last pera carefully.

For maintaining the books, the actual figures are entered. The calculation of TO is only for taxation purpose.

Thanks sir for giving valuable time.. It means if we are maintaining books, we should entered actual figure of buy and sell in P&L and BS.
sorry for asking too many query.

Yes books are to be maintained with actual transactions (each transactions' net figures) (not absolute values), to arrive at the net profit/loss.