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 ?
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
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 🙏
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.
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!!!
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
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 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
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?
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!!
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....
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. 🙏
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.
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.
You have explained the complex calculation part very well. It helped me. Thank you for your knowledge-packed videos😊. Waiting for the next part. Loss &
Hi, this involves a lot of intricacies. But to give you a quick answer, in case one wants to declare loss (& not declare the profit as per presumptive scheme), conservatively one should get the Tax audit done & maintain books where Turnover is upto 2crore (because sec 44AD is involved here). Further if turnover is above 2crore & upto 10 crore then you need to maintain books & need not do tax audit(considering cash payment & cash receipts are upto 5%, as said in the video). And if the turnover exceeds 10crore then tax audit is required to be conducted.
After seeing another doubt popped up that the turnover calculation is only for knowing tax audit applicability? And for showing in ITR the same turnover to be considered or just the sale value(ignoring absolute profit and loss) to be considered?
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.
Madam your presentation skill is mind blowing.Please make one video on how to analyse/read balance sheet particularly for Bankers while putting credit proposals.Thank you.
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
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
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.
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 😊
Uploaded on proper time..
Thank you so much 🥰🥰
Thank you 😊
*Yes mam I want to know about presumptive tax structure*
Master video for F&O related issues, Calculation of T/O for tax audit..
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
Yes please, share the details about presumptive tax structure also.
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
best explanation ever, Rachana is a genius
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 mam.... happy to see you. Thank you
@Rachana- Brilliantly taught....Super Duper Important:)
Thank you 😊
your video is highly accurate, you are lord of gyan
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
Very nicely explained. Please make video on presumptive taxation.
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..
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..
Please do Presumptive taxation and loss on Trading F&O videos as early as possible 🙏
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! 😊
Great sesion mam very helpful in prepation my paper presentation. Thank you lot ❤
Most welcome 😊
Very SuperB...I was looking for this only...!!! liked...as always...Keep doing such informative videos !!!❤🙏👍
So much love mam as you gives lots of infomative video time to time. hats off you 😂🙏
yeah interested to know about presumptive taxation and calculation, it will be enlightened
Excellent information about F&O for small traders with low investment where the profit is minimal.
Thanks for the recognition
Great, please proceed.....❤
Thank you very much mam for sharing very much informative and useful video about tax audit.
Thank You 😊
It was superb and in depth knowledge. Thank you. also please make a video on Presumptive taxation.
Yes mam please tell us about presumptive taxes 🙏
Thank you so much for very detailed and clear explanations...🎉
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
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!!!
Thank you so much 🙏
thanks mam, finally understood. thanks for explaining very clearly.
very informative video, will love to have presumptive taxation video
Thank you for the clarification...was always confusing for someone new to F&O !!
Plz make separate video on presumptive taxation. Thanks
Shall try..
One of the conditions is Audit applicable if a loss or profit of less than 6% of turnover (for non-cash transactions).
Fantastic explanation of Options & Futures taxation. But strange prediction of turnover 😂. Thank you
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
Thank you for the clarification on f&o taxation. How to prepare p&l statement and balance sheet for f&o trading business
Editing team is so good.
Please make a video on presumptive taxation
Excellent video, please let us know about presumptive taxation as well. Thank you.
Everything was crystal clear...Mam can you please elaborate the premium topic it's sincere request
you are educating us through your videos ..
keep up the good work ma'am
Really appreciate it
Thank you 😊
Mm u r the best
Thank you so much Rachna. Really helpful 😃👍
Superb presentation 👍
Thank you😊
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
U are Phenomenal 🤝☺️
Please release video related to presumptive taxation for F&O business..thanx in advance
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.
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
Mam, this is defferent level🔥🔥🔥🔥
Madam Great knowledge Please Make a video on presumptive taxes - a loyal pro investor
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!!
Please mam put separate video about speculative business
Shall try
Thanks a lot for clarifying
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
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....
thank u so much.. as a engineering student its like 'dimmag hill gaya'
thank u for this effort maam
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
Yes mam, do a video on presumptive taxation
Shall try..
Shall try the same
Great...
Excellent Madam very informative
Informative
Thank you very much Mam for this well explained information 👍
Thank you.
Hello mam, please make video on how tax is calculated on swp and how investor can declare it while filing ITR.
Awesome
Me ata tumcha all time Fan🤩
Thank you mam 😀
Ur earrings looks superb ❤
and thanks for detailed video
Thank You 😊
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
Pl post a video about presumptive itr taxation
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.
Yes mam please do a video on tax slabs and presumtive tax 🙏
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.
Thank you so much mam.
Please, do the presumptive scheme for F&O trading
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.
Madam would you please throw some light on maintenance of books etc. as also how to do that.
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.
Very informative video, please clarify regarding advance tax for future and options to be paid
You have explained the complex calculation part very well.
It helped me.
Thank you for your knowledge-packed videos😊.
Waiting for the next part.
Loss &
No audit.
@@tamilevil Thank you
Hi, this involves a lot of intricacies. But to give you a quick answer, in case one wants to declare loss (& not declare the profit as per presumptive scheme), conservatively one should get the Tax audit done & maintain books where Turnover is upto 2crore (because sec 44AD is involved here). Further if turnover is above 2crore & upto 10 crore then you need to maintain books & need not do tax audit(considering cash payment & cash receipts are upto 5%, as said in the video). And if the turnover exceeds 10crore then tax audit is required to be conducted.
@@CARachanaRanade Thank you
After seeing another doubt popped up that the turnover calculation is only for knowing tax audit applicability?
And for showing in ITR the same turnover to be considered or just the sale value(ignoring absolute profit and loss) to be considered?
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.
Yeah plz make video on presumptive taxes
Madam your presentation skill is mind blowing.Please make one video on how to analyse/read balance sheet particularly for Bankers while putting credit proposals.Thank you.
मी आपले मराठी व्हिडिओ पण बघतो. आपण खुप चांगल्या पद्धतीने समजाऊन सांगता. खरंच मनापासून आभार.
धन्यवाद 😊
Hi - I'd really like to understand presumptive taxation
Hello ma'am this was refreshing.. pl do a video on presumptive taxation pls.
Thanks for this video Rachana, can one opt for presumptive taxation in case of F&O, considering it is a business?
We need to know presemtive case....and what benifits it has...wwhen to use it.....
Thank you so much plz more details presevative
Thank you 😊will try
@CA Rachana ㊉①⑧①⑦②①⓪③②⑧⑦ we all know you are fake account plz Don't do this wrong things.
Ma'am, in this case the oprions are assumed to be held till expiry, how a turnover is calculated if options are squared off before expiry?😊😊
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
very well explained, Thanks a lot Rachna madam, if possible can you also explain tax calculations for profit/loss in equity short selling..
This is very useful ma’m. Would love to know about presumptive taxation as well
What is profit ??, if diff between buying amt and selling amt is turnover
How to calculate profit ???
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
Thanks for video
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.
Please mam do video on presumptive taxation