Guys,
Firstly this budget the FM has opened up advance rulings for Indian residents as well, the budget notifications will probably happen in October and we will try our best to use this window to get clarification from the IT department itself.
Coming to the turnover bit, I guess there will be always debate on what those guidelines actually mean, but as long as it is being done in spirit and not really done to hurt government coffers, I guess it is completely okay.
Imagine someone has turnover of over 10 crores, but he shows only 20lks using whatever method that suits him and then declares 8% of this as his income, this is something that can cause big trouble. But as long as what you are doing is not really doing that, it should be completely okay.
The guideline says: http://www.caalley.com/gn/30357dtc19988.pdf page 24, 5.1.2 b
The total of positive and negative, or favourable and unfavourable differences shall be taken as turnover;
Premium received on sale of options is to be included in turnover;
In respect of any reverse trades entered, the difference thereon shall also form part of the turnover
x`
Total favourable and unfavourable, is it scripwise or tradewise or should it be FIFO is not really mentioned in these 3 statements. That is what some people have decided it should be used as.
When it comes to point 3 a very important word is: "shall also", very clearly indicating it is not either/or but it is a sum of point 2 and point 3.
This is definitely up for debate, but as I was saying earlier, as long as it is done in the right spirit, shouldn't be any issue. Also since we as Zerodha are giving the turnover calculation on a public forum, we have to do it in the most conservative way possible.
Firstly this budget the FM has opened up advance rulings for Indian residents as well, the budget notifications will probably happen in October and we will try our best to use this window to get clarification from the IT department itself.
Coming to the turnover bit, I guess there will be always debate on what those guidelines actually mean, but as long as it is being done in spirit and not really done to hurt government coffers, I guess it is completely okay.
Imagine someone has turnover of over 10 crores, but he shows only 20lks using whatever method that suits him and then declares 8% of this as his income, this is something that can cause big trouble. But as long as what you are doing is not really doing that, it should be completely okay.
The guideline says: http://www.caalley.com/gn/30357dtc19988.pdf page 24, 5.1.2 b
The total of positive and negative, or favourable and unfavourable differences shall be taken as turnover;
Premium received on sale of options is to be included in turnover;
In respect of any reverse trades entered, the difference thereon shall also form part of the turnover
x`
Total favourable and unfavourable, is it scripwise or tradewise or should it be FIFO is not really mentioned in these 3 statements. That is what some people have decided it should be used as.
When it comes to point 3 a very important word is: "shall also", very clearly indicating it is not either/or but it is a sum of point 2 and point 3.
This is definitely up for debate, but as I was saying earlier, as long as it is done in the right spirit, shouldn't be any issue. Also since we as Zerodha are giving the turnover calculation on a public forum, we have to do it in the most conservative way possible.
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, we are still not live on it, how did you get this? We will be live on it from this friday..
