Calculation of turnover in case of F&O Trading
Turnover can be calculated, in the manner explained below:
- The total of positive and negative or favourable and unfavourable differences shall be taken as turnover.
- Premium received on sale of options is to be included in turnover.
- In respect of any reverse trades entered, the difference thereon shall also form part of the turnover.
Here, it makes no difference, whether the difference is positive or negative. All the differences, whether positive or negative are aggregated and the turnover is calculated.
For computation of turnover of futures, the total of positive and negative or favourable and unfavourable differences shall be taken as turnover.
Expenses
Expenses such as postage, conveyance and telephone, incurred for carrying on the business can be claimed as business expenses.
As per the query data......
1. TO would be 2.50L
2. Audit may not be applicable unless section 44AD(4) gets triggerd.