Tax
Turnover
Also known as: Trading Turnover, F&O Turnover
For F&O taxation, the sum of absolute profits and losses from all trades during the financial year.
Detailed Explanation
In F&O taxation, turnover is calculated as the sum of absolute profits and losses from all trades, not the contract value or volume. For example, if you have ₹20,000 profit and ₹50,000 loss, your turnover is ₹70,000. This definition is crucial for determining audit thresholds and presumptive taxation eligibility.
Related Terms
Futures and Options
Financial derivatives that allow trading based on future price movements of underlying assets.
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Audit Threshold
Income or turnover limits beyond which mandatory tax audit is required.
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Presumptive Taxation
A simplified tax scheme where profits are presumed as a percentage of turnover, avoiding detailed bookkeeping.
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