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F&O Transaction Turnover under section 44AB

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  • F&O Transaction Turnover under section 44AB

    When I generate report of Turnover of F&o transactions under section 44AB, it shows the incorrect report of Option Transactions. For Option transactions, it shows turnover as absolute difference of buy & sell value as turnover, which is not correct. How to generate a correct report of Option Transactions?

  • #2
    Dear Mahesh Damle,

    You need to perform mark to market process so all premiums will be added in turnover report.

    Refer this forum post for more details:
    MProfit Support


    • #3
      Dear Tanmay,

      After doing mark to market process as described in your post, it shows the turnover. But, it does not match with broker's Tax Statement of turnover for Option Contracts.

      Below, is an example of the same.

      Suppose I buy one contract of AMBUJACEM-OPTSTK:31-10-19:205.00:CE for Rs. 6.00 on 03.10.2019 and sold the same at Rs. 5.00 on same date with contract size of 2500 shares.

      Now, for this, software shows the turnover of Rs. 2500.00 in Turnover under sec 44AB report, whereas the broker backoffice shows the turnover of Rs. 15000.00 ( Diffrence of Rs. 2500 + Value of sell contract as 12500.00)

      So, what is the correct value of turnover out of these two?
      1. Rs. 2500.00 as shown by Mprofit Software or
      2. Rs. 15000.00 as shown by Broker Tax Turnover Report

      I have checked with two different brokers. Both are showing turnover for Tax purpose under sec 44AB as Rs. 15000.00

      Please help.


      • #4
        Dear Mahesh,

        Please email your contact details to [email protected] so our support person can call and assist you.
        MProfit Support