ITR filing for AY 2026-27 is open
ITR Filing for F&O & Intraday Traders carry your losses forward.
F&O is business income — it needs ITR-3, correct turnover and, sometimes, a tax audit. Filed on time, your losses carry forward for 8 years and cut future tax.
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Content updated 28 Sep 2026
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Expert tax help for ITR across India
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Turnaround
3–5 working days
How we work
Online · Call · WhatsApp
Availability
Mon–Sat, 9 AM – 7:30 PM
Suitable for
F&O, intraday, loss carry-forward
How F&O and intraday are taxed
Trading in futures and options is treated very differently from buying shares for investment. For income tax, F&O trading is non-speculative business income, while intraday equity trading is speculative business income. Both are reported in ITR-3 with a profit and loss account and balance sheet details, and not as capital gains. Returns for FY 2025-26 are filed under the Income-tax Act, 1961. The new Income-tax Act, 2025 applies from tax year 2026-27.
Who needs this service
- F&O and intraday traders, whether in profit or loss.
- Salaried people who trade options on the side.
- Traders with past losses to carry forward.
- Investors who also hold delivery shares and mutual funds.
Key rules and figures
- Turnover: as per the ICAI guidance note, F&O turnover is the total of absolute profits and absolute losses on each trade, not the contract value.
- Tax audit under section 44AB applies if turnover exceeds ₹10 crore where cash transactions are within 5%. It can also apply if you earlier opted for section 44AD, now declare lower profit, and your income is above the basic exemption limit. Audited returns are due by 31 October; others by 31 July.
- Losses: F&O loss can be set off against other income except salary in the same year, and carried forward for 8 years against business income. Speculative loss can be set off only against speculative income, for 4 years. Carry-forward needs a return filed by the due date.
- STT is not deductible. From 1 October 2024, STT is 0.1% on sale of options premium and 0.02% on futures.
- Profit is taxed at slab rates along with your other income. Delivery trades are separate: STCG under section 111A at 20% and LTCG under section 112A at 12.5% above ₹1.25 lakh.
Common mistakes we see
- Filing ITR-2 and showing F&O as capital gains.
- Using contract value as turnover and assuming an audit is required.
- Not filing because of a loss, and losing the carry-forward.
- Mixing intraday and F&O results.
How our expert handles it
- We collect tax P&L reports from every broker and check them against AIS.
- We separate F&O, intraday and delivery trades and compute turnover.
- We claim genuine expenses such as brokerage, internet, advisory fees and software, and assess audit applicability.
- We file ITR-3 on time and track your losses year to year.
A simple example
Karan is salaried and trades options. During the year his profitable trades total ₹4,00,000 and his losing trades total ₹6,50,000. His turnover is ₹4,00,000 plus ₹6,50,000, which is ₹10,50,000, far below ₹10 crore, and he has never opted for section 44AD, so no audit is needed. His trading result is a loss of ₹2,50,000. After ₹30,000 of trading expenses like internet and advisory fees, the loss is ₹2,80,000. It cannot reduce his salary income, but if he files ITR-3 by the due date, the ₹2,80,000 loss is carried forward and set off against business profits over the next 8 years.
What we do
Turnover computation
Broker P&L converted to tax turnover correctly.
- Zerodha, Groww, Upstox, Angel…
Audit check
Section 44AB applicability assessed honestly.
- CA audit arranged if needed
Loss carry-forward
Business and speculative losses tracked year to year.
- Set-off rules applied
Capital gains too
Delivery trades and MF sales in the same return.
- STCG 20%, LTCG 12.5%
Benefits
Documents required
Don't have everything? Send what you have on WhatsApp — our expert will tell you what's missing.
Send documents on WhatsApp- Broker tax P&L report (all brokers)
- Contract notes / ledger (if asked)
- AIS / Form 26AS
- Bank statements
- Previous year ITR (for loss carry-forward)
- Expense bills related to trading
How it works
- 1
Book & talk to an expert
You request a callback or message us on WhatsApp. We understand your income sources in a 10-minute call.
- 2
Share documents
Send Form 16, AIS/26AS and proofs on WhatsApp or email. We tell you if anything is missing.
- 3
We prepare your return
We reconcile AIS and 26AS, compare the old and new regime and prepare the computation.
- 4
You review & approve
You see the final tax, refund and every figure before anything is filed.
- 5
Filed & e-verified
We file on the official portal and help you e-verify with Aadhaar OTP. You receive the ITR-V and computation.
Why ITR Filing Online
A real expert, not software
Your return is prepared and reviewed by a tax professional who talks to you, checks your AIS and Form 26AS, and explains every figure.
Registered company
ITR Filing Online is a brand of TaxCaller India LLP (LLPIN AAQ-7388), with an office in Noida.
Maximum legal refund
We compare the old and new tax regime and claim every deduction you are eligible for — nothing more, nothing less.
Support after filing
Refund delays, defective return notices or questions from the department — we stay with you after the return is filed.
Reviewed By
Expert for this topic ITR for F&O & Intraday Traders
Abhinay Rai
Advocate & Legal Consultant13+ Years Experience
B.com, LL.B.
Short Bio: Advocate Abhinay Rai is an experienced legal and tax professional with expertise in tax matters, income tax, GST, civil and criminal law. He provides practical guidance on tax compliance, legal documentation and dispute-related matters, focusing on clear, reliable and client-focused solutions. The process, documents, timelines and fees on this page are checked against the current rules and government portals, and updated whenever the law, forms or fees change.
How we compare
| ITR Filing Online | Others | |
|---|---|---|
| Correct form & schedules | Chosen and checked by an expert | Guesswork on apps |
| AIS / 26AS reconciliation | Every entry matched | Often skipped |
| Old vs new regime | Compared for you | You decide alone |
| Support after filing | Refund & notice help | Usually extra |
ITR for F&O & Intraday Traders — your questions answered
How is F&O turnover calculated for income tax?
As per the ICAI guidance note, turnover is the sum of absolute profits and absolute losses on each trade. If one trade made ₹10,000 and another lost ₹6,000, turnover is ₹16,000, not the net ₹4,000 or the contract value. This figure decides tax audit applicability and must be reported in ITR-3.
Can I claim STT and brokerage as expenses in F&O trading?
Brokerage, exchange charges, stamp duty, internet, advisory fees, trading software and depreciation on a laptop used for trading can be claimed as business expenses. Securities transaction tax, however, is not deductible under section 40(a)(ib). Keep bills and bank proof for every expense, because claims without evidence can be questioned later.
What is the ITR due date for F&O traders?
If no tax audit is required, the due date is usually 31 July of the assessment year, the same as other individuals. If a tax audit under section 44AB applies, the audit report is due by 30 September and the return by 31 October. Missing the due date blocks carry-forward of trading losses.
Can intraday loss be set off against F&O profit?
No. Intraday equity loss is speculative and can be set off only against speculative income, and carried forward for 4 years. The reverse is allowed: F&O loss, being non-speculative business loss, can be set off against intraday profit. Keeping the two clearly separate in ITR-3 is essential for correct set-off.
Do F&O traders have to pay advance tax?
Yes, if total tax for the year after TDS is ₹10,000 or more. It is paid by 15 June, 15 September, 15 December and 15 March at 15%, 45%, 75% and 100%. Traders with irregular profits should review their position each quarter to avoid interest of 1% per month under sections 234B and 234C.
Is F&O profit taxed at a flat rate like capital gains?
No. F&O profit is business income, so it is added to your salary and other income and taxed at your normal slab rates under the regime you choose. It does not get the 20% or 12.5% capital gains rates. A trader in the 30% slab pays 30% plus cess on F&O profit.
I did not report my F&O loss last year. Can I still carry it forward?
Only if a return reporting the loss was filed by the due date. A belated return cannot carry forward business losses, and an updated return under section 139(8A) cannot be filed to declare a loss. If time for revision remains and the original was on time, a revised return may help.
Related services & official references
Official references
In short
ITR filing for F&O and intraday traders is reporting futures & options and intraday trading as business income in ITR-3, with turnover, profit and loss and tax audit applicability checked. It is meant for f&O traders, intraday traders and active stock investors, including those with losses. At ITR Filing Online (itrfilingonline.in), a tax expert prepares and files your ITR for F&O &.
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