Answer

1. F

   Facts

   For speculative intraday trades, turnover is the total of the absolute favourable and unfavourable differences on each trade, as per the ICAI method. Sale value is not used as turnover.

2. P

   Provisions and law

   • Sec 43(5), Income-tax Act 1961Speculative transaction means one settled without delivery; derivatives on a recognised exchange are excluded
   • Sec 44AB (now Sec 63)Tax audit if business turnover exceeds ₹1 crore, or ₹10 crore where cash receipts and payments are each within 5%
3. A

   Analysis

   If intraday trades gave profits of ₹1,50,000 and losses of ₹2,10,000, turnover is ₹3,60,000. This is added to F&O turnover to get total business turnover for audit purposes. Most brokers give this figure in the tax P&L; check it.

4. C

   Conclusion

   1. 1Download intraday trade wise P&L
   2. 2Add absolute profits and losses per trade
   3. 3Add to F&O turnover for the total
   4. 4Use the total for audit and ITR reporting

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.