Investing
F&O Turnover — Meaning
For tax audit purposes, the total of absolute profits and losses on each futures and options trade.
What is F&O Turnover?
F&O turnover isn't the contract value traded. Under the ICAI Guidance Note on Tax Audit, it is the aggregate of favourable and unfavourable differences — the absolute value of profit or loss on each squared-off trade. It is used to test whether a tax audit is needed under Section 44AB (over ₹10 crore for digital transactions) and for presumptive taxation limits. F&O income itself is non-speculative business income reported in ITR-3.
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Related terms
More Investing terms
RSU (Restricted Stock Unit)
Employer shares granted on a vesting schedule, taxed as salary on vesting and as capital gains on sale.
Speculative Income
Income from transactions settled without delivery — mainly intraday equity trading.
VDA (Virtual Digital Asset)
Crypto, NFTs and similar assets, taxed at a flat 30% with no loss set-off and 1% TDS.
STT (Securities Transaction Tax)
A tax on buying and selling listed securities on stock exchanges, a condition for concessional capital gains rates.
