Taxation in f&o

May be @Quicko can answer better, but my understanding and experience says that your cost of acquisition should be the strike price (of your contract). This assumption I’m taking is based on two facts:-

  1. The very definition of put (call) contract is right to sell (buy) at a specific price. By selling that put option you have given buyer of that put contract a right to sell at strike price. Your contract has been assigned means the buyer of put contract has sold his asset at strike price, so your price of acquisition is THE strike price.

  2. Zerodha contract notes:- while calculating your fund liability, they use strike price only.
    (But somehow, for physical settlement of future contracts, zerodha ‘delivers’ the shares at spot price and the difference of buying vs spot price is cash settled in contract notes-which may or may not be tax efficient depending upon loss or profit.)

As far as the premium received, you keep them irrespective of what happens to physically settled contracts ( different from index options).

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