How you are calculating turnover in tax report?
In quicko it is showing different turnover amount.
How to get correct correct f&o turnover for tax purpose?
Please give F&O turnover as per tax rules. Zerodha and Angel broking gives turnover as per TAX Rules.
Hi @Ravig, Please fetch the new P&L from Dhan Web and App. Use the Excel Statement for Derivatives Gain and Loss. The turnover mentioned there is computed as per SEBI’s logic which is Buy Value + Sell Value.
However for tax-filing purpose, the logic is very simple - It is the absolute value of Gain / Loss. You can easily apply the ABS Function of excel to get the same. Please find the below SS for reference. Incase you face any difficulties, feel free to reach out.
@iamshrimohan But we should get tax report as per TAX rules not as per Sebi rule. Is it possible to get same.
Yes indeed, that’s why I said for now, you can use the P&L from Dhan Web and App and use the ABS formula.
For TAX Specific PNL, we will be implementing the same logic.
TO as per TAX is basically the absolute value of Gain/Loss (As per 8th edition of ICAI Changes).
@iamshrimohan Thanks for your reply. When we can expect tax specific p&l?
Because it is easy to share with CA, We need it.
Can you help me regarding
How much charges i am paying as an option trading including stt, tax, brokerage, stamp duty etc etc
I am not getting this reports on P/L statement !
Hi @Pradhan fetch Profit and Loss statement from Dhan Web/App. The report will be sent to your registered email ID. The excel version has all the charges levied for Futures and Options combined. Do let me know in case you any issue in getting those numbers.
Hi Everyone,
Just want to let know some calculations on the TURNOVER for TAX TAX purpose.
So the calculation to be like How GROWW has mentioned
My friend had visited offline CA , and looks like some brokers including DHAN, ShareKHAN have mistakes in calculation. SO until thats corrected please use this,
In the p&L sheet , Column J , which is “Realized p&L” needs to be added, but before that make it ABS value, and that will be the total turnover.
Example: KOTAK FUT bought at 1750 sold at 1800 [Quantity: 400] the Turnover would be 20000 [ and not in lakhs as mentioned] same way if there a loss make the -20000 to plus 20000 for turnover calculation. SO column J put =ABS () and then sum it up
=ABS(A1)
Clearly mentioned here
PLease let me know if this makes sense and how to proceed once this is done.
The turnover calculation done on DHAN website is not as per new guide lines issued by ICAI in Aug 2022. I have already sent full details to DHAN with all references, which they are still working on. With old method, turnover will be many times higher, forcing traders to get account audited. With new guidelines, audit requirement will not be there. In new method only profit and loss amount are to be added. say in one trade profit is 500 and in other loss is 300, turnover will be 800.
Extract of ICAI guideline Para 5.14 b.- Derivatives, futures and options: Such transactions are completed without actual delivery of shares or securities or commodities etc.
These are squared up by receipts/payments of differences. The contract notes are issued for the full value of the underlined shares or securities or commodities etc. purchased or sold but entries in the books of account are made only for the differences. The transactions may be squared up any time on or before the striking date. The buyer of the option pays the premia. The turnover in such types of transactions is to be determined as follows:
(i) The total of favourable and unfavourable differences 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.
@9923859785 Request you to check the Excel version of P&L from Statements and Reports. Since the file is in excel format, you can easily apply the ABS formula as suggested above for a quick fix. This will be resolved in the next release.
Also your username seems to be a mobile number, request you to change for privacy.
This isn’t the correct interpretation. Kindly cross check. Do not rely on online content including of top brokers concerning tax matters. Most of them are badly researched and vaguely written!
Dear Mr Shri mohan, I would be incorrect to say that presently the turnover calculated is as per SEBI. I am sorry to say that most of the brokers just take name of SEBI to justify their inaccuracies or policies. If it is as per SEBI, can you let me know SEBI circular number so that I will approach them to correct themselves. Also, if its as per SEBI, then how does other brokers present the turnover as per ICAI circular for TAX. Alternatively, you can add one more column to calculate “Turnover for Taxation”. Thanks
@9923859785 When we say as per SEBIs guidelines it is mainly in terms of how the SEBI turnover fees is calculated. The turnover term is derived from the same calculation. Having said this, we have already added the TO as per ITD and will be visible in the next release.
