F&O & Trading Income Tax Filing in India
Income from futures & options and intraday trading is treated as business income, not capital gains — and that changes everything about how it's reported. Traders routinely get the turnover computation, audit applicability and loss treatment wrong, inviting notices.
Done right, though, F&O reporting lets you set off and carry forward losses and deduct genuine expenses — real tax value that most casual filings miss.
Key features and requirements
- F&O and intraday income is business income, reported in ITR-3
- Turnover is computed under the prescribed method (not just contract value)
- Tax audit under Section 44AB may apply depending on turnover and profit ratio
- Trading and business expenses are deductible
- Losses can be set off and carried forward if the return is filed on time
- Speculative (intraday) vs non-speculative (F&O) losses have different set-off rules
How TaxSastra handles this
We compute your trading turnover the correct way, determine whether an audit applies, capture your expenses and losses, and file an ITR-3 that stands up to scrutiny.
What’s included
- Trading turnover computation (F&O and intraday)
- Business-income classification and ITR-3 filing
- Tax-audit applicability assessment
- Expense deduction and P&L preparation
- Loss set-off and carry-forward
- Reconciliation with broker P&L and AIS