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F&O Turnover Calculator + Tax Audit Check

Calculate configured ICAI GN turnover and compare with audit threshold.

Applies to: FY 2025-26 (AY 2026-27) · Last reviewed: 2026-08-04 · dual-cited ITA 1961 + ITA 2025

Visible formula

Σ absolute signed settlement differences + options-seller premium = turnover.

Printable IF / THEN decision path

  1. IF trade exists, THEN add absolute difference.
  2. IF options seller, THEN add premium.
  3. IF threshold crossed, THEN audit required; ELSE not required, but check cash %.
  4. IF loss carry-forward, THEN file timely.

FAQs

How is turnover calculated?

1. ICAI Guidance Note (GN) method: Turnover = sum of POSITIVE of favourable differences + ABSOLUTE VALUE of unfavourable differences (i.e., add profits and losses, both as positives)

Is premium included?

2. ICAI Guidance Note (GN) method: Turnover = sum of POSITIVE of favourable differences + ABSOLUTE VALUE of unfavourable differences (i.e., add profits and losses, both as positives)

What is threshold?

3. ICAI Guidance Note (GN) method: Turnover = sum of POSITIVE of favourable differences + ABSOLUTE VALUE of unfavourable differences (i.e., add profits and losses, both as positives)

Does loss need timely return?

4. ICAI Guidance Note (GN) method: Turnover = sum of POSITIVE of favourable differences + ABSOLUTE VALUE of unfavourable differences (i.e., add profits and losses, both as positives)

Which ITR?

5. ICAI Guidance Note (GN) method: Turnover = sum of POSITIVE of favourable differences + ABSOLUTE VALUE of unfavourable differences (i.e., add profits and losses, both as positives)

Is there divergence?

6. ICAI Guidance Note (GN) method: Turnover = sum of POSITIVE of favourable differences + ABSOLUTE VALUE of unfavourable differences (i.e., add profits and losses, both as positives)

Statutory basis

Section 44AB ITA 1961 read with ICAI Guidance Note on Tax Audit (2023 edition); s.44AD (presumptive for business)

VERIFY: ICAI GN 2023 edition treatment of option premium on settlement vs exercise; Mumbai ITAT vs Jaipur ITAT divergence on option premium in turnover