Dear Dhan Support Team,
I am writing to seek clarification regarding the turnover figures provided in my trading account for FY 2024-25 (April 1, 2024, to March 31, 2025), as I am preparing to file my income tax return in India and need to determine the correct figure for tax compliance.
I have noticed a significant discrepancy between two reports on the Dhan app:
- Released P&L Report: This shows a total turnover of > ₹12 crore for FY 2024-25.
- Tax Report for FY 2024-25: This shows a total turnover of ₹18 lakh for the same period.
This confusion arises because I understand that for tax purposes in India (under Section 44AB and ICAI guidelines for F&O trading), the turnover is calculated as the sum of absolute profits and losses from trades, plus premiums received on options sold, rather than the notional or gross transaction value. The ₹18 lakh figure from the Tax Report seems to align with this definition, while the > ₹12 crore figure from the Released P&L Report appears to reflect a notional or total contract value.
Could you please confirm:
- Which turnover figure (Released P&L > ₹12 crore or Tax Report ₹18 lakh) should I use for filing my income tax return and determining the tax audit requirement?
- If the ₹18 lakh in the Tax Report is the correct turnover per Indian tax laws, what methodology is used to arrive at this figure? (e.g., absolute P&L + option premiums).
- If the > ₹12 crore figure includes notional value or other components not relevant for tax, could you explain what it represents?
This clarification is critical as it impacts whether a tax audit is mandatory (threshold ₹10 crore for digital transactions) and how I report my F&O trading income (which includes a loss of ₹13 lakh). I would appreciate your response at the earliest, along with any supporting documentation or a detailed breakdown if possible.
Thank you for your assistance.