ilmscore | Prediction Details
"Now comes the grand finale assume you had bought a put option at 16,000 and you had paid the premium of 350. the trade goes in your favor and the market goes down to 14,000. So what is the gross profit? it's going to be nothing but the difference between these two or rupees 2000 and this 2000 is nothing but whenever you want to square off this position you are going to receive this as a premium of rupees 2,000 right in this case what will be your net profit or loss it will be 2000 minus 350 which is the premium paid and that's why it's going to be 1650. What will be the absolute profit or loss same 1650 and here comes the trick part now what is turnover turbo is nothing but absolute profit or loss plus premium received on sale of option so it's going to come up as 1650 plus 2000 so this is going to come up to 3650."
By CA Rachana Phadke Ranade | July 20, 2022 | Pending
From video
Tax Audit Applicability on F&O | CA Rachana Ranade 00:16:28 - 00:17:10
Interpreted Prediction
For a put buyer, the turnover is calculated as the absolute net profit/loss plus the premium received on sale (which is the gross profit from squaring off). If there's a net profit of 1650 (after paying 350 premium) and the gross profit from squaring off is 2000, the turnover is 1650 + 2000 = 3650.

Prediction Details

Topic
Turnover Calculation for Options (Put Buyer)

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