Tax on Option Selling

Does turnover calculation remain same for option selling like its there in option buying?
If not , please help with an example.

Also , Can you please clarify if Tax is on Net Income(Positive Profit + Negative Loss - Expenses) or option turnover ?

Hi @Chetan_Bajaj, the tax is levied on the net income and not on turnover. I have created an example which will help you in understanding turnover calculation below. Let me know if you need any further help. :blush:

Buying Premium Selling Premium Profit/(Loss) Absolute values Turnover (Selling Premium + Absolute value)
Option 1 10 12 2 2 14
Option 2 12 10 -2 2 12
Option 3 8 0 -8 8 8
Total -8 34

Much Thanks @Yash_Kaviya . Above table is very clear in case of option buying.
One last confirmation , so calculation of turnover will remain same in option buying as well as in option writing , right?

Always welcome @Chetan_Bajaj, yes even in case of option writing the turnover calculation shall be same.

Thankyou so much @Yash_Kaviya :slightly_smiling_face:

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@Yash_Kaviya I want to file my income tax for previous financial year i.e. Apr-21 to Mar22. Can someone get in touch with me , please?

@Sakshi_Shah1 can you please help ?

Hey @Chetan_Bajaj

Sure. We can help you with your tax filing. Someone from our team shall get in touch with you soon.
Kindly raise a ticket and provide us with your contact details here - Raise a Ticket