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F&O Turnover Calculator.

The ICAI 10th-edition Guidance Note (Revised 2025), applicable AY 2026-27 onwards, reinstated the option-sale premium into the turnover formula — reversing the 8th edition’s removal of it. Get the edition right, or the Sec 44AB threshold test built on top of this number is wrong.

Inputs

Futures — sum of PROFITS on squared-off trades (₹)

Futures — sum of LOSSES on squared-off trades, as a positive number (₹)

Options — sum of PROFITS on squared-off trades (₹)

Options — sum of LOSSES on squared-off trades, as a positive number (₹)

Premium received on sale of options during the year (₹)

From the broker's ledger — total premium received on writing/selling options, before any netting

Is this premium already netted into the profit/loss figures above?

Most broker-supplied P&L statements report NET profit/loss per trade — premium is usually NOT already netted separately into a turnover figure. Check the broker's methodology before selecting Yes.

Other business turnover, if F&O is not the only business (₹)

Optional — combines with F&O turnover for the overall Sec 44AB threshold test

Result

Futures turnover (absolute P&L sum)₹2,75,000

Options — absolute P&L sum₹3,60,000

Options — premium add (per anti-double-count check)₹6,50,000

Options turnover₹10,10,000

F&O turnover₹12,85,000

Edition matters

This uses the 10th-edition (Revised 2025) formula for AY 2026-27 onwards. Audits for AY 2022-23 through AY 2025-26 used the 8th-edition method WITHOUT the premium add-on — do not apply this calculator retroactively to those years without switching the method.

The formula changed editions on you.

Option-sale premium was in the turnover formula in older ICAI Guidance Note editions, removed in the 8th edition (AY 2022-23 onwards), and reinstated — with an anti-double-count check this time — in the 10th edition (Revised 2025), applicable AY 2026-27 onwards. A calculator or template built against the 8th-edition method will understate F&O turnover for current-year audits, potentially masking a genuine Sec 44AB trigger.

Sec 44AB applicability checker Form 3CD template

How F&O turnover is computed under the current Guidance Note

Turnover for futures is the sum of absolute favourable and unfavourable differences on all squared-off trades during the year — a ₹50,000 profit contributes ₹50,000, and a ₹30,000 loss also contributes ₹30,000 (its absolute value, never netted or subtracted). This has been the stable part of the formula across editions.

For options, the 10th-edition ICAI Guidance Note on Tax Audit (Revised 2025), applicable for AY 2026-27 onwards, computes turnover as the same absolute profit/loss sum PLUS the premium received on the sale (writing) of options during the year — reinstating an item the 8th edition (AY 2022-23 onwards) had removed. The edition matters: audits for AY 2022-23 through AY 2025-26 correctly excluded the premium; AY 2026-27 audits must include it.

The Guidance Note's anti-double-count proviso applies where the broker's own P&L statement has already netted the premium into the per-trade profit/loss figure it reports — in that case, do not add the premium again on top. Confirm the broker's methodology before answering that question, since brokers are not consistent about how they present this.

Worked example — combined futures and options turnover

A trader has futures profit ₹1,80,000 and futures loss ₹95,000; options profit ₹2,20,000 and options loss ₹1,40,000; total option-sale premium received ₹6,50,000 for the year, not already netted into the broker's reported P&L.

Inputs

Futures turnover₹1,80,000 + ₹95,000 = ₹2,75,000

Options P&L turnover₹2,20,000 + ₹1,40,000 = ₹3,60,000

Options premium add₹6,50,000 (not netted, so added in full)

Output

Options turnover₹3,60,000 + ₹6,50,000 = ₹10,10,000

F&O turnover₹2,75,000 + ₹10,10,000 = ₹12,85,000

44AB trigger?Above ₹1 Cr threshold (non-digital) — audit likely required, subject to the presumptive-scheme exceptions

The premium add-on nearly triples the options-turnover figure in this example — exactly the kind of swing that pushes a trader from "no audit needed" to "audit required" purely because of which Guidance Note edition was applied.

Common mistakes

Using the 8th-edition (no-premium) method for AY 2026-27

The most consequential current error. Understates turnover, which can wrongly suggest Sec 44AB does not apply when it actually does under the correct 10th-edition method.

Double-counting the premium

If the broker's P&L export already reflects premium-adjusted per-trade results, adding the raw premium figure on top double-counts it. Verify the broker's statement methodology before answering the anti-double-count question.

Netting profits against losses instead of summing absolutes

Turnover is the sum of absolute values, not net profit or loss. A trader who broke even (₹5L profit, ₹5L loss) still has ₹10L of turnover, not ₹0.

Ignoring delivery-settled derivatives

Where the underlying was actually taken delivery of and held as stock-in-trade, the entire sale value — not the trade-vs-settlement difference — is business turnover. This calculator assumes cash-settled squared-off positions; delivery-settled derivatives need separate treatment.

Forgetting to combine with other business turnover for the 44AB test

F&O turnover combines with turnover from any other business the same assessee runs when testing the overall Sec 44AB threshold — a small F&O turnover alongside a larger separate business can still trigger audit on the combined figure.

Frequently asked questions

Is option premium included in F&O turnover for AY 2026-27?+

Yes. The ICAI Guidance Note on Tax Audit, 10th edition (Revised 2025), applicable for AY 2026-27 onwards, reinstated the option-sale premium into the turnover formula — reversing the 8th edition's (AY 2022-23 onwards) removal of it. Confirm which edition applies to the assessment year under audit before computing.

How is F&O turnover calculated — profit and loss netted, or added?+

Added as absolute values, never netted. Every squared-off trade's profit or loss contributes its absolute magnitude to turnover — a profit and a loss of equal size both add to turnover rather than cancelling out.

What is the anti-double-count check for option premium?+

Some broker P&L statements already net the option-sale premium into the reported per-trade profit/loss figure. Adding the raw premium amount again on top of such a figure double-counts it. The Guidance Note requires checking the broker's own methodology before deciding whether to add the premium separately.

Does F&O turnover trigger Sec 44AB tax audit on its own?+

It feeds the same threshold test as any other business turnover — generally ₹1 crore, or ₹10 crore where 95%+ of receipts and payments are digital — combined with turnover from any other business the assessee runs. The presumptive-scheme provisions (Sec 44AD) and loss-below-6%-of-turnover rules can still trigger audit even under the higher digital threshold; use the Sec 44AB applicability checker for the full test.

Authoritative sources

ICAI Guidance Note on Tax Audit under Section 44AB, 10th Edition (Revised 2025) — Method verified 19 July 2026 as applicable for AY 2026-27 onwards. Re-verify against the current edition before each tax-audit season, as this specific computation has changed edition-to-edition.

Always confirm against the latest version of the source. Regulations evolve and amendments are common.

Related calculators

Sec 44AB applicability checker →Form 3CD template →IT Act 2025 section mapper →

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Last reviewed: 2026-07-19 · For informational purposes only — not professional advice.