How to calculate turnover for intraday trading in shares, wot is net of sell and buy?Pls give eg.?
Please see 2nd question of this link http://www.thehindubusinessline.com/iw/2006/10/23/stories/2006102300521600.htm
An example will ensure more clarity.
I. Purchase Cost: 75
Sale Price: 77
II. Purch. Cost: 126
Sale Price: 122
On the presumption these two are the only transactions during the year the turn over of the assessee will be Rs. 6 (Rs. 2 + Rs. 4). i.e., even if a transaction results in loss the diference between the purchase and sales will be taken for the purpose of calculation turnover for Income Tax Act. This is stated as net of sell and buy.