How is turnover calculated in Tax P&L and how can one determine the need for an audit?
The turnover calculation in Console serves the purpose of determining whether a tax audit is necessary. We adhere to the guidance note on Tax audit under section 44AB.
- For Intraday equity transactions, the turnover is calculated as the absolute sum of settlement profits and losses per scrip.
- For Delivery equity transactions, the turnover is calculated based on the sell-side value of the stock.
- For F&O (Equity, Currency, Commodity) transactions, the turnover is determined by the absolute sum of settlement profits and losses for each F&O scrip.
An audit is required if:
The turnover for the financial year exceeds ₹10 crores.
If the turnover is less than ₹10 crores, an audit is still required if the profitability is less than 5% of the turnover (as per Section 44AB).