Hello,
In the article “Income Tax on Trading - Learn by Quicko” it was mentioned that turnover calculation for taxaudit applicability in equity delivery trade is “Sales Value”?
While in the article Trading Turnover Calculation for Trading Income - Learn by Quicko, the same turnover calculation mentioned as “Absoute profit” for equity delivery trade.
Which is applicable at present, for the purpose of turnover calculation pertaining to taxaudit applicability in equity delivery trade?
Hello @Chelcia The calculation of turnover shall be applicable only when you consider Equity Delivery Trading as Business Income.
In such case, Turnover = Sales Value
In all other case i.e Trading in Equity Intraday / Derivatives, Turnover = Absolute Profit / Loss.
Hope, this solves your doubt.
Is Sales Value = Selling price per share x No of shares sold?
Hi @Amitayu_Das
Yes, in case of equity treated as business income, sales value = sales price per share x No of shares sold.
Thank you.
Thanks for the prompt response.
To resolve the discrepancy regarding turnover calculation for tax audit applicability in equity delivery trades, we advise consulting the latest guidelines issued by relevant tax authorities. It’s essential to verify the most current regulations to ensure compliance with applicable laws. Additionally, seeking clarification from tax professionals or conducting further research on authoritative sources can provide accurate information. Ultimately, adhering to the latest guidelines ensures compliance and avoids potential penalties or misunderstandings.