F&O and derivatives tax turnover

In your above article I didn’t see in AngelOne they mention about F&O expenses about brokerage, STT, etc
For ex: Say I made 10 Lacs as Profit from F&O trading.
Expenses: Say I paid 4.0 Lacs in Total (2.0 Lacs brokerage And 2.0 Lacs STT)
So can I claim complete brokerage and STT paid as expense against my F&O income?
In that case 10lacs-4lacs= 6 Lacs is what I’ve to pay for Tax?

Hello @msmaheshk1

Yes. You can claim brokerage and STT both as valid business expenses against F&O profit/loss. On the net profit, tax would be calculated as per slab rates.

Read more - What Expenses Can a Trader claim in Income Tax Return?

Hi Sakshi,
thanks for the reply. I know slab rate so just leave aside it for a moment.
On my above example, what would me my net profit? is it 6.0 Lacs on that Tax would be given as per my tax slab rate?

Yes. In the above example, your Net Profit = 6 lacs. Tax on this income would be as per slab rates.

Thank You for clarifying.

Hi Sakshi,
I imported data from angel one on Quicko.
But it just shows the P&L and doesn’t show STT & Brokerage.

How can I share that screen shot with you?

Hi @msmaheshk1

Please raise a ticket with the product team from here - Raise a Ticket. They shall look into your query and help you resolve the issue.

Hi Sakshi,
one more clarification: In F&O trading, we make profit 1 day and we make loss the other day. Net we made some profit by FY end.
When we make loss on a particular day, The P&L for that day includes all the charges (borkerage, stt, etc). In that case how do you again show deductible expense of these charges against the net profitable income?

Hey @msmaheshk1

Profit or Loss is the difference in the sell price and buy price. You can additionally claim eligible expenses against this income in your P&L to compute the taxable profit. If you have calculated P&L after claiming these charges, you cannot reduce them again since it would be considered as a double deduction.

Hi Sakshi,
Every broking company will provide on that day’s profit or Loss statement after including all the charges. So at the end of the financial year you will get the P&L statement after including all the charges. But separately we can get the report of all these charges.
So in that case how do you identify and claim deductible expense only for the day u made profit?

Hi @msmaheshk1

The reports provided by every broker is different. For an instance, Zerodha provides a report with details of profit/loss on each trade without including the charges. The report for charges is separately provided.
You can try and download a tradewise report from your broker which might have details of gross profit/loss from each trade without including the expenses.
Brokers are the only source of data for trading transactions. Thus, if they can provide better reports with clear segregation, calculations for ITR would be accurate.

How turnover is calculated in Future & Option intraday trading.

Is it accumulation sum of profit or loss arrived from intraday trading or actual buy & sell values…?

Hello @Ashok_More,

Turnover for Futures Trading = Absolute Profit
Turnover for Options Trading = Absolute Profit + Premium on Sale of Options

Here, Absolute Turnover means the sum of positive and negative differences. Trading Turnover Calculation can be either through scrip wise method or trade wise method.

Thanks a lot for your reply.

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Is their any change in turnover calculation of options traders I am seeing changes Turnover amount in Tax P&L

Hi @ds_raki

So from now onwards, Turnover for Futures and Options Trading = Absolute Profit.
instead of “Absolute Profit + Premium on Sale of Options.”

We have implemented the change on our platform. You will be able to see the updated calculation in our P&L.

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Thank you madam, IT means alot of traders will benefit turnover wise and filing of income tax returns will be more hassle free.

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Hi, now icai gane instructions of calculating f&o turnover in his guidance note 2022. Now no need to add premium of options in calculation. For more info visit on below link


Hi @Ashish_Agarwal

Yes, that’s correctly said by and the same has been implemented on Quicko as well.

Turnover for Futures & Options Trading = Absolute Profit.

The turnover calculation for options has been updated based on the eighth edition of the guidance note dated 14/08/2022 (w.e.f A.Y 2022-23). Previously, turnover for options trading was calculated as “Absolute Profit + Premium on Sale of Options.”

I am a working professional falling in the 30% tax bracket. I have opted for the old tax regime. I started investing in F&O from July’22 till September '22. I am concerned about how I will be taxed on the F&O component. I have downloaded the P&L data from zerodha and it shows a turnover of a little over 1CR. How will the taxation work on this? I am really concerned about this, any help is much appreciated. I can share the turnover data if it helps making things a little clear