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Scripwise and Tradewise are two different methods of reporting trades, calculating P&L and turnover. 

Calculating turnover trade-wise is the most compliant way of determining turnover. 

Calculating turnover scrip-wise makes the turnover calculation easier by combing all the trades in one go.

• Scripwise Method: In this approach, turnover is calculated by collating all trades on the particular contract/scrip for the financial year and summing up the absolute value of profit and loss for each script
• Tradewise Method: In this approach, turnover is calculated by summing up the absolute value of profit and loss of every trade done during the financial year.

In both methods, the P&L shall be the same, but there can be a difference in the turnover calculation which in turn shall affect a person's tax audit applicability.

Read more on Trading Turnover.

Here's how you can upgrade to the Pro Plan & avail the benefit of scripwise method of reporting trades.

Let us take an example for Equity transactions:

Reliance Industries Limited (RIL) trade-wise transactions are given below:

Trade wise reporting of Reliance Limited:

Trade:1 Profit/Loss = Sale value- Buy value (i.e. 36,000-34,000) = 2,000 (Profit)

Trade:2 Profit = Sale value- Buy value (i.e. 5,000-6,000) = -1,000 (Loss)

Scripwise Reporting of Reliance Limited:

Total Buy value = INR 40,000 (i.e Trade 1 buy value + Trade 2 buy value)

Total Sale value = INR 41,000 (i.e Trade 1 sale value + Trade 2 sale value)

Total Profit/Loss = INR 1,000 (i.e Trade 1 Profit + Trade 2 loss) 

Calculation of Trading Turnover

(by taking the above example of RIL)

Here, trading turnover for Intraday and Futures & Options transactions is calculated by summing up all Absolute Profit (i.e. the sum of absolute values of profit or loss)

• Trade-wise Turnover = 2,000 + 1,000 = 3,000 (i.e Trade 1 absolute value + Trade 2 absolute value)
• Scrip-wise Turnover =  1,000 (i.e absolute value of total profit of reliance scrip)

Note:
1. Futures & Options (F&O) include equity, commodity & currency transactions.
2.Turnover calculation is required only in business income, i.e., Intraday and F&O transactions.