How is F&O tax calculation turnover determined, and what is its tax treatment?

How is F&O tax calculation turnover determined, and what is its tax treatment?

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In F&O tax calculation, turnover is determined by summing the absolute profits and losses from all trades. It includes realized gains, unrealized profits, and premium received from options. Tax treatment depends on the classification—F&O trading is considered a business income under tax laws. If turnover exceeds ₹10 crore, tax audit may be required. Profits are taxed as per applicable income tax slabs for individuals or corporate tax rates for companies. Losses can be set off against business income and carried forward for eight years to offset future gains, reducing tax liability.