Does option premium count in turnover?

For AY 2026-27 under GN 2025, option-sale premium must be considered unless already included in trade-level P&L.

Can I reduce turnover by charges?

No. Charges are expenses in Schedule BP, not reductions from turnover.

Is option turnover the same as profit?

No. Turnover is an audit-threshold figure; profit is taxable business income after eligible expenses.

Does option premium count in turnover?

For AY 2026-27 under GN 2025, option-sale premium must be considered unless already included in trade-level P&L.

Can I reduce turnover by charges?

No. Charges are expenses in Schedule BP, not reductions from turnover.

Is option turnover the same as profit?

No. Turnover is an audit-threshold figure; profit is taxable business income after eligible expenses.

AY 2026-27 Calculator guide Browser-only

Option turnover calculator.

Option turnover is the most error-prone F&O number because broker reports often follow older absolute-P&L logic. For AY 2026-27, verify whether option-sale premium is already included before using the number for audit decisions.

Open F&O turnover calculator All tools

How to calculate

Method

Start with favourable and unfavourable differences across option trades.
Add premium received on sale of options where it has not already been included in net trade-level P&L.
Do not subtract brokerage, STT, GST, exchange fees, or stamp duty from turnover.
Use broker tradebook or tax P&L as source data, then reconcile against GN 2025.

Inputs to collect

Before you start

Option realised profit/loss

Use broker reports, ledgers, contract notes, or invoices as support.

Premium received on options sold

Use broker reports, ledgers, contract notes, or invoices as support.

Broker turnover number

Use broker reports, ledgers, contract notes, or invoices as support.

Whether broker P&L already nets premium

Use broker reports, ledgers, contract notes, or invoices as support.

Common mistakes

Avoid these

Do not double-count premium

If premium is already embedded in per-trade P&L, adding it again overstates turnover.

Do not use notional value

Option contract value or margin blocked is not tax turnover.

Audit uses aggregate turnover

Combine options with futures, currency, commodity, and other business turnover.

Frequently asked questions

Does option premium count in turnover?: For AY 2026-27 under GN 2025, option-sale premium must be considered unless already included in trade-level P&L.
Can I reduce turnover by charges?: No. Charges are expenses in Schedule BP, not reductions from turnover.
Is option turnover the same as profit?: No. Turnover is an audit-threshold figure; profit is taxable business income after eligible expenses.

Next step

Run the live checker.

This page explains the method. The linked tool performs the working.

Open F&O turnover calculator

Methodology

Know the source logic.

FnOTax pages separate official-source rules from broker-report assumptions.

How we verify