ilmscore | Prediction Details
"going ahead with the next one call option you bought at fifteen thousand assume you paid a premium of three hundred what happened on expiry market went against your direction it went down to fourteen thousand five hundred are you going to execute the contract answers obviously no so here you will see a dash now how much will be the net profit or loss nothing whatever premium you have paid that is 300 rupees so what will be the absolute profit or loss that will be nothing but 300. Now tell me this absolute profit or loss plus premium on sale of option will that ever happen array no you're not going to execute the contract and that is the reason why you didn't receive any premium on sale or on square of the option and that is the reason why turnover will again be only 300 rupees"
By CA Rachana Phadke Ranade | July 20, 2022 | Pending
From video
Tax Audit Applicability on F&O | CA Rachana Ranade 00:15:00 - 00:15:39
Interpreted Prediction
For a call buyer where the option expires out of the money (and not executed), the turnover is equal to the premium paid. This is because there is no gross profit on squaring off. If the premium paid was 300, the turnover is 300.

Prediction Details

Topic
Turnover Calculation for Options (Call Buyer)

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