Only when treating trading P&L as a business income is it necessary to calculate turnover. Turnover is only used to establish whether or not a tax audit is required. Your tax liability is unaffected by your turnover.

The method to calculate trading turnover is different for each type of trading i.e. Equity Intraday, Equity Delivery, Equity F&O, Currency Trading, Commodity Trading, etc.

Method to Calculate Trading Turnover:

 

Trading TypeTrading Turnover
Equity Intraday TradingAbsolute Profit/Loss
Equity Delivery TradingSales Value
Equity F&O TradingFutures – Absolute Profit
Options – Absolute Profit + Premium on Sale of Options
Currency Trading (Equity / Intraday / F&O)Futures – Absolute Profit
Options – Absolute Profit + Premium on Sale of Options
Commodity Trading (Equity / Intraday / F&O)Futures – Absolute Profit
Options – Absolute Profit + Premium on Sale of Options