The turnover calculation on Console is utilised for determining whether a tax audit is necessary. Zerodha adheres to the guidance note on tax audit under section 44AB.
- Delivery: Turnover is calculated based on the sell-side value of the stock.
- Intraday: Turnover is calculated based on the absolute sum of the profits and losses per stock.
- F&O (equity, currency, commodity): Turnover is calculated based on the absolute sum of the profits and losses per F&O contract.
When you download the Tax P&L report, you may notice differences in turnover calculations between the tradewise and segments sheets. The turnover calculations on the tradewise sheet are calculated based on each trade, while the segments sheet calculations are based on each stock or contract.
You must consider the tradewise turnover when filing your taxes, as per the guidelines.