How is turnover calculated in Tax P&L and how can one determine the need for an audit?
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.
Did you know? On the Tax P&L report that can be downloaded, there may be a difference in the turnover calculations between the tradewise and segments sheets. The turnover calculations on the tradewise sheet are calculated based on each trade, and on the segments sheet, turnover calculations are based on each stock or contract. As per the guidelines, clients must consider the tradewise turnover while filing their taxes.
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