First of all, TO is to be calculated on trade wise and not taking averages.
Moreover, your calculation is not right
As per ICAI rules
TO for an option trade is calculated as total of
profit or loss of the trade plus the sell value of the option
and this method of calculation has been adopted by IT deptt.
Though I can understand that some fool (or group of fools) has drawn this method of calculation, not knowing anything about option trading, the different ways of trading options and so totally ridiculous. But we cannot change it, when it has been adopted by IT department, whether right or not.
No one is concerned about it, whether this method gives highly inflated value of TO. Sab lakir ke fakir hain, koi raasta nahin hai.