How can i know P/L from this image

[madhavareddy1203]

So far I understand about your situation some suggestion.
1) If you are a intraday trader or fno or option then your turnover is Gross profit or Loss. Not amount invested. For example You had made a profit of Rs 1000 today excluding cost means gross (sell - buy) and second day loss of rs 1000 then your turnover is Rs 2000 for future. For option little different. if required I will post. No need of audit if your total turnover as explained is below eligible limit of that year.

2) When I was trading in mcx my monthly turnover for brokerage purpose was rs 100 crores plus. And I also get notice from department for information purpose and I said yes and mention rules with message after that nothing happens.

3) If you want to claim loss in next year then you have to submit returns within due date else you are not able to claim loss.
If you have any query I can try to guide. Because there is many myths spread by less knowledgeable people. Even many Ca misguide trader for fees or lack of knowledge. Dont afraid as you dont have done sin.

Nice.. Thanks.. Very useful information

 

[PUCHU_2500]

if a trader deposit Rs. 20000/- with his broker, your maximum loss is never more than Rs. 20000/- though your tading statement shows sum crore.......it will not come into your a/c.....I am doing my job as an accountant from last 18/20 years and faced CA/AG/CAG a lot of times though there is no any share related transactions.....guys, try to maintain a cash book and ledger, it will help you to tax related matters......
CA/IT consultant will not say you everything elaborately......this is their business secrecy....
How you will maintain your Cash Book.....

 

[elwavetrader]

So far I understand about your situation some suggestion.
1) If you are a intraday trader or fno or option then your turnover is Gross profit or Loss. Not amount invested. For example You had made a profit of Rs 1000 today excluding cost means gross (sell - buy) and second day loss of rs 1000 then your turnover is Rs 2000 for future. For option little different. if required I will post. No need of audit if your total turnover as explained is below eligible limit of that year.

2) When I was trading in mcx my monthly turnover for brokerage purpose was rs 100 crores plus. And I also get notice from department for information purpose and I said yes and mention rules with message after that nothing happens.

3) If you want to claim loss in next year then you have to submit returns within due date else you are not able to claim loss.
If you have any query I can try to guide. Because there is many myths spread by less knowledgeable people. Even many Ca misguide trader for fees or lack of knowledge. Dont afraid as you dont have done sin.

Please do a post for options turnover calculations also. Thanks

 

[canikhil]

if a trader deposit Rs. 20000/- with his broker, your maximum loss is never more than Rs. 20000/- though your tading statement shows sum crore.......it will not come into your a/c.....I am doing my job as an accountant from last 18/20 years and faced CA/AG/CAG a lot of times though there is no any share related transactions.....guys, try to maintain a cash book and ledger, it will help you to tax related matters......
CA/IT consultant will not say you everything elaborately......this is their business secrecy....
How you will maintain your Cash Book.....

Well, business secrecy is part of the game isn't it! Same like good traders keep their strategies secret.

With regards to your cash book, please note that broker A/c is not part of the Multi-Column Cash Book. Any balance with the broker would reflect as a current asset - Debtors.

 

[Smart_trade]

One can maintain cash book, bank book, ledger all in Tally. Very easy software.
Most CAs will be happy in getting data in Tally.

Smart_trade

 

[canikhil]

One can maintain cash book, bank book, ledger all in Tally. Very easy software.
Most CAs will be happy in getting data in Tally.

Smart_trade

I actually won't even suggest Tally. You can play around with your trade data in excel and create the books therein itself. Once ready, convert the excel files into PDF.

 

[tradertrader]

I actually won't even suggest Tally. You can play around with your trade data in excel and create the books therein itself. Once ready, convert the excel files into PDF.

Not a bad Idea. But in tally one entry complete all affected ledger and accounts so may be less effort. But everyone have choice.:thumb:

 

[Trady]

Books of Account can be easily made in Excel but Accounting softwares like tally have their own advantages.

1. Cash flow Statement ( Tally Warns in Case of Negative Cash Balance) . Most Important point which the Taxman will be eagerly looking for.

2. Excel has No Flexibility when it comes to Adjustment entries.

 

[tradertrader]

Please do a post for options turnover calculations also. Thanks

For all non-speculative transactions, the article says that turnover to be determined as follows –

The total of favorable and unfavorable differences shall be taken as turnover
Premium received on sale of options is also to be included in turnover
In respect of any reverse trades entered, the difference thereon should also form part of the turnover.

So if you buy 25 units or 1 lot of Nifty futures at 8000 and sell at 7900, Rs.2500 (25 x 100) the negative difference or loss on the trade is turnover.

In options, if you buy 100 or 4 lots of Nifty 8200 calls at Rs.20 and sell at Rs.30. Firstly, the favorable difference or profit of Rs 1000 (10 x 100) is the turnover. But premium received on sale also has to be considered turnover, which is Rs 30 x 100 = Rs 3000. So total turnover on this option trade = 1000 +3000 = Rs 4000.

 

[Square]

I want to know what all documents are needed to be given to CA to get audit done for derivatives trading? Kindly give full list.
Are we supposed to compile data or that is also done by the CA?
Also is there any list of CAs who do such audit?