How is turnover calculated?

How is turnover calculated?

Turnover, within the context of trading, refers to the aggregate value of all executed transactions over a financial year. It is a crucial metric for determining tax obligations as per the Income Tax Act, 1961. At FYERS, the turnover calculation aligns with the standards laid out by the Institute of Chartered Accountants of India (ICAI).

You can easily check your turnover on FYERS by visiting the 'Turnover and Expenses' section found under 'My Account'. FYERS facilitates a user-friendly experience by offering a toggle for switching between the traditional and revised calculation methods, especially concerning options trading.

Turnover Calculation Across Different Trading Transactions:
  1. Equity Intraday Trading: Here, turnover is the absolute sum of the difference between the buying and selling amounts for each scrip traded.
  1. Delivery-Based Equity Trading: In this case, turnover is calculated based on the total sell value of the equity shares.
  1. Futures Trading: For futures, turnover encompasses the sum of all positive and negative differences (the absolute profit or loss figures).
  1. Options Trading: Similar to futures, turnover in options is the sum of all positive and negative differences (the absolute profit or loss). However, options have two distinct methods for turnover calculation:
    • Old Method: This approach adds the premiums received from options sales to the turnover.
    • New Method: This approach, in contrast, excludes the premiums received from the calculation of turnover.
The following table illustrates the turnover calculation for different types of transactions at FYERS:

Transaction Type
Buy Amount
Sell Amount
Difference
Turnover
Equity Intraday
₹50,000 (100 x 500)
₹52,000 (100 x 520)
₹2,000
₹2,000
Equity Delivery
₹40,000 (100 x 400)
₹42,000 (100 x 420)
₹2,000
₹42,000
Futures
₹6,00,000 (100 x 6000)
₹6,02,000 (100 x 6002)
₹2,000
₹2,000
Options
₹2,000 (100 x 20)
₹3,000 (100 x 30)
₹1,000
Old: ₹1,020 (1000+20) New: ₹1,000

Note:
  • Closed Positions Only: Turnover is calculated based on positions that have been closed within the financial year.
  • Options Trading: The method chosen for calculating turnover in options trading can significantly affect the figure and hence, the tax liability.

    • Related Articles

    • How is interest on SGB calculated and paid?

      SGBs come with a fixed interest rate of 2.50% p.a. based on the initial investment. This interest is disbursed semi-annually directly into the investor's bank account. To illustrate, if Mr. M invests ₹10,00,000 in an SGB issue, he will earn an annual ...

    • What are the main components of the Tax P&L Report?

      The main components of the Tax P&L Report include: Realised P&L: Detailed breakdown of net long-term and short-term capital gains, speculative and non-speculative P&L, turnover for equity and F&O, and realised trading P&L. Expense Summary: Detailed ...

    • Is the expense summary available in the Tax P&L Report?

      The expense summary is not available in the Tax P&L Report. However, if you want to access the expenses for a particular financial year, you can do so under the Turnover and Expenses section available under Reports in the My Account portal.

    • What types of profits and losses are detailed in the Tax P&L Report?

      The Tax P&L Report details various types of profits and losses, including: Net Long-Term Capital Gains P&L Net Short-Term Capital Gains P&L Taxable Intraday P&L (Speculative) Taxable Futures P&L (Non-Speculative) Taxable Options P&L (Non-Speculative) ...

    • How to integrate FYERS API Bridge Advanced Extension with TradingView?

      We have released FYERS API Bridge Advanced Extension for TradingView platform with few updates. Installation For the latest version of TradingView Extension, click Help from the top menu of FYERS APIBridge. Then go to Jump Start setup and follow ...