ICAI 2022 tips – No want to contemplate premium obtained as turnover – F&O – Buying and selling Q&A by Zerodha

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Lastly, in some excellent news for choices writers, ICAI has clarified that when calculating turnover to find out tax audit, solely the revenue or loss needs to be thought-about. No must individually add the premium obtained when writing choices as turnover. 1/3

Lastly, in some excellent news for choices writers, ICAI has clarified that when calculating turnover to find out tax audit, solely the revenue or loss needs to be thought-about. No must individually add the premium obtained when writing choices as turnover.

Right here is the hyperlink to the steering word (web page 17). https://drive.google.com/file/d/1lDHZmh7X3a3WASRfjLJ_PsOwfCBAwbTH/view?usp=sharingWe have up to date the Varsity chapter on taxation. We are going to replace our tax P&L statements to point out possibility turnover per the steering word in a number of days.

Varsity by Zerodha

Turnover, Steadiness Sheet, and P&L – Varsity by Zerodha

This matter covers the variations between paying revenue tax and submitting revenue tax and the assorted ITR varieties for various classes of assesses. The chapter additionally addresses a number of related queries on tax associated issues.

Est. studying time: 13 minutes

Hopefully, the audit necessities when on-line buying and selling is the one enterprise revenue are additionally Simplified quickly.

Buying and selling isn’t like working a traditional enterprise, and audit necessities are onerous for retail buyers. Therefore, most merchants keep away from declaring when submitting ITR.

That is actually good to listen to!

People who’re having any doubt relating to what’s the impression on possibility patrons :

There’s no change as even earlier, revenue or loss was used to find out the turnover for possibility patrons.

Sellers had this addition burden so as to add premium recd on sale of choices in turnover (for bizarre causes), that rule is eliminated now and patrons and sellers at the moment are on par with one another relating to figuring out tax legal responsibility.

Our resident CAs right here at @Tradingqna – @Jason_Castelino and others can verify if the above assertion is right or incorrect

Sure. Some reduction for those buying and selling in choices. However I don’t perceive one factor. How is it excellent news just for sellers? It’s for each buys are sellers. The turnover was calculated the identical means earlier for each buys are sellers.

People who’re having any doubt relating to what’s the impression on possibility patrons :

There’s no change as even earlier, revenue or loss was used to find out the turnover for possibility patrons.

Sellers had this addition burden so as to add premium recd on sale of choices in turnover (for bizarre causes), that rule is eliminated now and patrons and sellers at the moment are on par with one another relating to figuring out tax legal responsibility.

Kindly chorus from bringing such non sensical theories.