ICAI has recently issued new guidance note, & as per that the premium received on sale of option is not to be added again in turnover if it is already included in Net Profit calculation. Thus, in our example, the turnover will be Absolute value of Net gain or loss, which is column H. Hence turnover for option seller will be Rs. 3,000 (09:11 to 13:10) & turnover for option buyer will be Rs. 3,000 (13:11 to 18:05).
Thanks a lot for giving this update on the video. I was about to comment and request to please give an update on the new guidance. I have another question. What is the effective date for this clarification. can we revise our prior year it return with the new turnover values ?
Ma'am, there has been guidance note issued by ICAI on this section recently say a last week. As per which Turn Over defination has been changed, so request to revise/make a new video for better/correct understanding 🙏
Why not everyone tell about this If your total income including STCG after applicable tax deductions is below Rs 2.5 Lakh, then your total tax liability is nil and also no liability will arise us/ 111A as deduction up to the basic tax exemption limit is allowed
Hi Rachana Thanks for tons of clarifications. T/O reqd =10Cr. Want to know how can I prepare myself for Tax audit and books of A/C. I was told that because all demat F&O transitions happen online and all reports are available in digital form it's easy to maintain books of a/c. I use a Zerodha trading platform. Can you have a video on how to prepare books of a/c and prepare P&L statement and balance sheet. Also one more question on Advance Tax. How do you accurately predict your15%,45%,& 75% income on 3 adv tax dates. In F&O you are not sure how much profit or loss you will be making at the end of the year. Sorry for a long comment!!!
For call option you have paid the premium and hence it will not be taken for calculation of T/o... As per literal interpretation of the law you have to add premium received on sale of option but you are paying premium and hence call option is wrong!!
Option maine jiss price par becha 200 Aur jitne par square off kiya 60 Meri jeb mein paisa aaya 140 Turnover bana 340 Premium received while entering a position + profit or loss after exiting position = turnover Waah waah waah ye kya system hai bhai Mera desh badal raha hai peeche ho raha hai. Oh sorry pinned comment nahi padha tha. Mera desh badal raha hai aage badh raha hai
pls make a video clarifying when to go for tax audit and when not needed for salaried person doing f&o and stocks trading longterm and shortterm and intraday....
Maam now 1 ammendment has come in guidance note regarding this. We will be very happy if you will incorporate that ammendment in this video. now the turnover in case of options will be changed in your examples. Thanks from Hisar.
I am new for fno options. Just play with 2.5L as training. Yesteray my profit was 2670 through option buying. After taxations I have got just 137. Government is just killing public. I put all efforts simply some guja... people are eating
Superb explanation mam ! I never miss your videos. I was looking for turn over calculation here and there,and I were not able to figure out. But this video had cleared all the doubts, and more importantly it came on right time. Thank you so much. And would love to learn about presumptive taxation.
Is tax audit applicable if turnover is less than 10 Cr but their is a net loss or profit is below 6% or 8% of turnover? Considering assessee have business income only through FNO trading.
@@ashishmhetre1773 tax audit will be applicable if last year u have declared income under presumption taxation scheme and in current year u are declaring less than 8%/6% or loss and ur income is above BEL then in such case tax audit will be applicable
@@reddybhargavipuredi3389 thanks for this. But I need more info. Last year I didn't do any FnO trading. I had filed ITR-2 last year. So, how do I know whether I had opted for presumptive or non-presumptive taxation?
So, If I incurred an FO loss of 100000/- and have salary income & other income as well. and turnover as per this is 1200000/- then would I need to get the tax audit done in order to adjust this loss with other income???
thanks a lot ma'am... I have been reading everywhere about F&O turnover concept but couldn't understand and you taught it in very simple way.... thanks a lot
Good informative videos. And please also elaborate the reverse trade (3 option) in calculation of Turnover, so that many of us also get and understand the concept fully
I'm confused why she's saying if 2000 points difference in strike price turnover is 2000. Turnover will be 2000*50 or 2000*25 for Nifty and Bank Nifty respectively on sale of options.
zerodha, groww has turnover filled for us in FY. so can we use it or it may be wrong? Rachana mam, kindly confirm whether can we use the turnover mentioned by Groww, Zerodha or need to calculate manually
Why you did not consider the lot size while calculating the options turnover ? For example, Nifty 16000 strike call premium is 300, but lot size will be 50. So total buy value will be 15000. At the time of square off, premium received is 400, again lot size 50, so total selling value is 20000. In this case turnover should be (20000 + 5000) = 25000 right?
Hi Aaroh, lot was not considered for the sake of simplicity, however if we consider lot, below will be the turnover calculation: Say for our case 1 under option seller (from 09:08 to 10:28), The Gross profit will now become -1000*50= -50,000. And the premium recieved will be 300*50= 15,000, hence net profit will be -35,000. So turnover will be premium (15,000) plus absolute net profit (35,000) which comes to 50,000.
Everyone's question who came to see the video is what all are allowed expenses which can be deducted from profits? That's the million dollar question. The info provided here can just be downloaded from the back end of any broker.
I download my statement from Zerodha, turnover is showing for options only not for the future, and options turnover is calculated as the total profit & loss only. But, as per my understanding, we need to add the total sell value with the total profit & loss. Please help me with that ? 2- When i enter my loss with a minus in business for options- It doesn't get calculated for losses. Does it carry forward or not and why its not calculated ?
I have learnt all these things, but the confusion is in the presumptive taxation only (specifically for salaried & F&O). Hope you will explain in next video. Waiting.
In this case , you need to show minimum 6 % profit in F&O ,Plus usual salary income. But if you show profit below 6% (mostly happen when F&O is in Loss) .Then you need to Tax audit done by CA
What is turnover of option buyer... if someone buy 17300 call option 20 lots(1000 shares) at rs 20 total buy rs(20000) And sell at rs 22 so sell value(22000) So what is the turnover
While trying to file through quicko i am being asked to opt in or opt out of tax audit. I have a small turnover of 15700rs.I did some small intraday trades in last year. Overall it is loss and quicko is telling tax audit is applicable for turnover less than 25 lakhs if the business is reported as loss.
Mam URGENT request last week new guidline came for calculating turnover for options 👍🏼 this is good news . Now turnover is only total sale amount minus purchase amount ,this will not inflate turnover now. calculation has changed in 8th notice from this year ICAI has issued notice
Mam, I have one question if you could clarify please, In case of options,isn't lot size is taken into consideration, If yes then we will have to multiply premium value with lot size (50 or 25),then the turnover will be much higher when we add both of them, that's how zerodha is calculating it and showing turnover as.. Please clarify.. Thanks in advance.
Hi Mam , Would be more than happy to have your contribution just incase these , F&O is sold before the expiry(Probably intra day F&O as well) and their tax audit applicability just like this practical way . 🤞
How about the taxes for the transactions on F&O, Equity, Derivatives- LTCG and STCG etc... these are the costs involved in conducting the transactions. What is the tax treatment. Can you also please make a video on the filing part of both equity, F&o and Futures transactions. The key and important points to be noted for tax filings. Also, If Tax audit, who has to do it? is it a CA,in case if the turnover is more than 10CR? thanks a lot.
What if a person is having loss or profit less than rate specified under presumptive scheme (6%). In such a scenario will tax audit be required to carry forward losses or pay tax for profit which is under 6% of the turnover. Would be great for many viewers, if this could be clarified. (Fun and hard fact: for most F&O would be in loss😅)
Thanks! I believe investing with Tax context is useful for Tax Harvesting & mindful actions. Presumptive Income video shall be useful & info. on maintenance of books of accounts when Turnover more than 25 Lakhs and/or Income more than 2.5 Lakhs. 🙏
ICAI has recently issued new guidance note, & as per that the premium received on sale of option is not to be added again in turnover if it is already included in Net Profit calculation. Thus, in our example, the turnover will be Absolute value of Net gain or loss, which is column H. Hence turnover for option seller will be Rs. 3,000 (09:11 to 13:10) & turnover for option buyer will be Rs. 3,000 (13:11 to 18:05).
Much needed, Great move by ICAI 👍
Thanks for clarification 🙏
Thanks a lot for giving this update on the video. I was about to comment and request to please give an update on the new guidance. I have another question. What is the effective date for this clarification. can we revise our prior year it return with the new turnover values ?
@@ankurbakshi Its effective from year A.Y 2022-2023, i.e F.Y 2021-2022
True CA Ranade tour information in T/o is outdated..it is as advice no addition of sake value
I was just about to write this piece of info. Great work btw.
2 Min silence for who all are not being profit in FNO but watching this video 🤣🤣
Ha. Ha true
Me too 😅😂
Mem ka koie v video chorne ka nhi .. she iz the goddess of knowledge
😅
Bhai F n O me ydi loss ho to itr bharne ki jarurat nhi hai
DEAR MAM, THIS IS A USER FRIENDLY,USER RELEVANT AND USER URGENT VIDEO AT THE RIGHT TIME,GIVING CLARITY ON TAXATION FOR F&O TRADERS. EXCELLENT
Thank you 😊
Ma'am, there has been guidance note issued by ICAI on this section recently say a last week. As per which Turn Over defination has been changed, so request to revise/make a new video for better/correct understanding 🙏
Pl revise
*Yes mam I want to know about presumptive tax structure*
Please do Presumptive taxation and loss on Trading F&O videos as early as possible 🙏
Why not everyone tell about this
If your total income including STCG after applicable tax deductions is below Rs 2.5 Lakh, then your total tax liability is nil and also no liability will arise us/ 111A as deduction up to the basic tax exemption limit is allowed
Uploaded on proper time..
Thank you so much 🥰🥰
Thank you 😊
Yes please, share the details about presumptive tax structure also.
Very nicely explained. Please make video on presumptive taxation.
Hi mam.... happy to see you. Thank you
Hi Rachana Thanks for tons of clarifications. T/O reqd =10Cr. Want to know how can I prepare myself for Tax audit and books of A/C. I was told that because all demat F&O transitions happen online and all reports are available in digital form it's easy to maintain books of a/c. I use a Zerodha trading platform. Can you have a video on how to prepare books of a/c and prepare P&L statement and balance sheet. Also one more question on Advance Tax. How do you accurately predict your15%,45%,& 75% income on 3 adv tax dates. In F&O you are not sure how much profit or loss you will be making at the end of the year. Sorry for a long comment!!!
For call option you have paid the premium and hence it will not be taken for calculation of T/o...
As per literal interpretation of the law you have to add premium received on sale of option but you are paying premium and hence call option is wrong!!
Thank you so much mam, searching for taxation on f&o from a long time, but not getting proper guidance. This is very clear and useful 👍
Glad to hear that
Please make a video on presumptive taxation
Excellent information about F&O for small traders with low investment where the profit is minimal.
Thanks for the recognition
Yes mam please tell us about presumptive taxes 🙏
Option maine jiss price par becha 200
Aur jitne par square off kiya 60
Meri jeb mein paisa aaya 140
Turnover bana 340
Premium received while entering a position + profit or loss after exiting position = turnover
Waah waah waah ye kya system hai bhai
Mera desh badal raha hai peeche ho raha hai.
Oh sorry pinned comment nahi padha tha. Mera desh badal raha hai aage badh raha hai
yes please do a video on presumptive taxation ..and if our profits are not 6% of the turnover then too we have to file audited ITR
One of the conditions is Audit applicable if a loss or profit of less than 6% of turnover (for non-cash transactions).
Please mam put separate video about speculative business
Shall try
your video is highly accurate, you are lord of gyan
You missed the most important part that is ''WHAT IF Loss from F&O and turnover is less than 10 Cr''
This should be clear
Master video for F&O related issues, Calculation of T/O for tax audit..
pls make a video clarifying when to go for tax audit and when not needed for salaried person doing f&o and stocks trading longterm and shortterm and intraday....
@Rachana- Brilliantly taught....Super Duper Important:)
Thank you 😊
Maam now 1 ammendment has come in guidance note regarding this. We will be very happy if you will incorporate that ammendment in this video. now the turnover in case of options will be changed in your examples.
Thanks from Hisar.
It was superb and in depth knowledge. Thank you. also please make a video on Presumptive taxation.
yeah interested to know about presumptive taxation and calculation, it will be enlightened
Plz make separate video on presumptive taxation. Thanks
Shall try..
very informative video, will love to have presumptive taxation video
No wonder why people are trying to make money teaching how to trade rather than from trading 😂
I am new for fno options.
Just play with 2.5L as training.
Yesteray my profit was 2670 through option buying.
After taxations I have got just 137.
Government is just killing public.
I put all efforts simply some guja... people are eating
Superb explanation mam ! I never miss your videos. I was looking for turn over calculation here and there,and I were not able to figure out. But this video had cleared all the doubts, and more importantly it came on right time. Thank you so much. And would love to learn about presumptive taxation.
Glad to hear that..
Is tax audit applicable if turnover is less than 10 Cr but their is a net loss or profit is below 6% or 8% of turnover?
Considering assessee have business income only through FNO trading.
I too want to know the same
@@ashishmhetre1773 tax audit will be applicable if last year u have declared income under presumption taxation scheme and in current year u are declaring less than 8%/6% or loss and ur income is above BEL then in such case tax audit will be applicable
@@reddybhargavipuredi3389 thanks for this. But I need more info. Last year I didn't do any FnO trading. I had filed ITR-2 last year. So, how do I know whether I had opted for presumptive or non-presumptive taxation?
@@ashishmhetre1773 presumptive means you have to pay certain % of tax , if you have profit or not ?
@@ashishmhetre1773 If u have declared your income under 44AD or 44ADA then you have opted presumptive taxation
Madam Great knowledge Please Make a video on presumptive taxes - a loyal pro investor
Thank you for the clarification on f&o taxation. How to prepare p&l statement and balance sheet for f&o trading business
Mm u r the best
So, If I incurred an FO loss of 100000/- and have salary income & other income as well. and turnover as per this is 1200000/- then would I need to get the tax audit done in order to adjust this loss with other income???
Excellent video, please let us know about presumptive taxation as well. Thank you.
Please release video related to presumptive taxation for F&O business..thanx in advance
Right video at the right time as I also getting messages from ITR Department to fill taxes.
Going to learn more about the stock market from you.
Glad it was helpful..
thanks a lot ma'am... I have been reading everywhere about F&O turnover concept but couldn't understand and you taught it in very simple way.... thanks a lot
ᴅᴍ ⬆️⬆️⬆️ ᴛᴏ ɢᴇᴛ ᴀɴsᴡᴇʀs
Good informative videos. And please also elaborate the reverse trade (3 option) in calculation of Turnover, so that many of us also get and understand the concept fully
I would like to correct it's 44AB not 44ab as mentioned . It doesn't matter but you being a CA I expect you to take note of this.
best explanation ever, Rachana is a genius
Please mam do video on presumptive taxation
Oh my god! So much of the confusion is cleared up because of this video. Thank you so much.
@CA R. ㊉①⑥④①②④④⓪①④② stay away you scammer
Glad it helped! 😊
Hi - I'd really like to understand presumptive taxation
thanks mam, finally understood. thanks for explaining very clearly.
I'm confused why she's saying if 2000 points difference in strike price turnover is 2000.
Turnover will be 2000*50 or 2000*25 for Nifty and Bank Nifty respectively on sale of options.
Thank you so much for very detailed and clear explanations...🎉
Premium is not to be counted in turnover it is probably declared by ICAI committee on direct taxes and revised guidance note soon to be published.
Very SuperB...I was looking for this only...!!! liked...as always...Keep doing such informative videos !!!❤🙏👍
Plz cover a whole series on taxation , carry forward loss etc for cash and F&O segment... 🙏
Shall try
mam if my turnover value is more than 10 crores & profit is less than 5% than how to calculate my income tax?
Hello mam, please make video on how tax is calculated on swp and how investor can declare it while filing ITR.
Everything was crystal clear...Mam can you please elaborate the premium topic it's sincere request
Thank you so much 🙏
Thank you very much mam for sharing very much informative and useful video about tax audit.
Thank You 😊
Great, please proceed.....❤
zerodha, groww has turnover filled for us in FY. so can we use it or it may be wrong?
Rachana mam, kindly confirm whether can we use the turnover mentioned by Groww, Zerodha or need to calculate manually
Thank you for the clarification...was always confusing for someone new to F&O !!
Now more confusion..!! Professional here want to choose 44ADA, got equity Sale n Purchase plus FnO and what if suffer overall loss in FnO..!!! 😲
Fantastic explanation of Options & Futures taxation. But strange prediction of turnover 😂. Thank you
Madam would you please throw some light on maintenance of books etc. as also how to do that.
Presumptive Tax Video Request!
tax auditing was my last semester paper yesterday and we exactly read this things
Thank you for your comment...⬆️ ContacT the What'sap line above for more information, consultation and advise for profitable investment
Why you did not consider the lot size while calculating the options turnover ?
For example, Nifty 16000 strike call premium is 300, but lot size will be 50. So total buy value will be 15000. At the time of square off, premium received is 400, again lot size 50, so total selling value is 20000. In this case turnover should be (20000 + 5000) = 25000 right?
Thank you for your comment...⬆️ ContacT the What'sap line above for more information, consultation and advise for profitable investment
Hi Aaroh, lot was not considered for the sake of simplicity, however if we consider lot, below will be the turnover calculation:
Say for our case 1 under option seller (from 09:08 to 10:28), The Gross profit will now become -1000*50= -50,000. And the premium recieved will be 300*50= 15,000, hence net profit will be -35,000. So turnover will be premium (15,000) plus absolute net profit (35,000) which comes to 50,000.
We need to know presemtive case....and what benifits it has...wwhen to use it.....
Thanks a lot for clarifying
Everyone's question who came to see the video is what all are allowed expenses which can be deducted from profits? That's the million dollar question. The info provided here can just be downloaded from the back end of any broker.
I download my statement from Zerodha, turnover is showing for options only not for the future, and options turnover is calculated as the total profit & loss only.
But, as per my understanding, we need to add the total sell value with the total profit & loss.
Please help me with that ?
2- When i enter my loss with a minus in business for options- It doesn't get calculated for losses.
Does it carry forward or not and why its not calculated ?
Informative
I have learnt all these things, but the confusion is in the presumptive taxation only (specifically for salaried & F&O). Hope you will explain in next video. Waiting.
In this case , you need to show minimum 6 % profit in F&O ,Plus usual salary income. But if you show profit below 6% (mostly happen when F&O is in Loss) .Then you need to Tax audit done by CA
@@casomaygarg7197 Thanks. Does this presumptive taxation applicable (or optional) only if we cross the turnover?
@@sarathkumar341 those sections work in combination. Not in isolation.
This was really very useful for retail traders who have no idea about taxation on FnO. Thanks a ton Ma'am!!
Glad it was helpful! 😊
Go ahead with presumptive tax vedio please
What is turnover of option buyer...
if someone buy 17300 call option 20 lots(1000 shares) at rs 20 total buy rs(20000)
And sell at rs 22 so sell value(22000)
So what is the turnover
While trying to file through quicko i am being asked to opt in or opt out of tax audit. I have a small turnover of 15700rs.I did some small intraday trades in last year. Overall it is loss and quicko is telling tax audit is applicable for turnover less than 25 lakhs if the business is reported as loss.
CARR mam i think this video is watched by few days back
Mam URGENT request last week new guidline came for calculating turnover for options 👍🏼 this is good news . Now turnover is only total sale amount minus purchase amount ,this will not inflate turnover now. calculation has changed in 8th notice from this year ICAI has issued notice
Zerodha provides every detail in all segments we need not worry about calculation of turnover at all.
Pl post a video about presumptive itr taxation
Excellent Madam very informative
Mam, I have one question if you could clarify please, In case of options,isn't lot size is taken into consideration, If yes then we will have to multiply premium value with lot size (50 or 25),then the turnover will be much higher when we add both of them, that's how zerodha is calculating it and showing turnover as.. Please clarify.. Thanks in advance.
exactly even i got the same and searching a lot but every where it s showing the same info. ie, the Premium received + Absolute Profit and Losses..
thank u so much.. as a engineering student its like 'dimmag hill gaya'
thank u for this effort maam
Means In F&O transaction tax applicability only on the basis of turnover, There's not need to consider what's profit percentage of turnover?
How to calculate the tax audit applicability on turnover in Bitcoin transactions? Please guide
Hi Mam , Would be more than happy to have your contribution just incase these , F&O is sold before the expiry(Probably intra day F&O as well) and their tax audit applicability just like this practical way . 🤞
Hi, the calculation will be done in this manner only where the value of option (premium) will be considered for gross profit calculations
How about the taxes for the transactions on F&O, Equity, Derivatives- LTCG and STCG etc... these are the costs involved in conducting the transactions. What is the tax treatment. Can you also please make a video on the filing part of both equity, F&o and Futures transactions. The key and important points to be noted for tax filings. Also, If Tax audit, who has to do it? is it a CA,in case if the turnover is more than 10CR? thanks a lot.
What if a person is having loss or profit less than rate specified under presumptive scheme (6%).
In such a scenario will tax audit be required to carry forward losses or pay tax for profit which is under 6% of the turnover.
Would be great for many viewers, if this could be clarified.
(Fun and hard fact: for most F&O would be in loss😅)
Omg ye taxation system ko seekh ke apne liye aassaan banana padega
Yeah plz make video on presumptive taxes
Please continue presumptive…
very well explained, Thanks a lot Rachna madam, if possible can you also explain tax calculations for profit/loss in equity short selling..
Wow damn.... I'm very very strong in maths... forgot all calculations
Awesome
Me ata tumcha all time Fan🤩
So much love mam as you gives lots of infomative video time to time. hats off you 😂🙏
Thanks! I believe investing with Tax context is useful for Tax Harvesting & mindful actions. Presumptive Income video shall be useful & info. on maintenance of books of accounts when Turnover more than 25 Lakhs and/or Income more than 2.5 Lakhs. 🙏
Thanks for the recognition, I shall surely try to come up with the video on presumptive scheme
What is presumtive