Learn how Futures & Options (F&O) income is taxed in India. Understand ITR forms, turnover calculation, audit limits, deductions, advance tax & FAQs with Income Tax Dept links.
🔵 Q1: F&O income kis head mein aata hai – capital gains ya business income?
A: Great question! F&O trading is considered non-speculative business income under Section 43(5).
📌 Soch lijiye, F&O trading = business karna market mein!
👉 Read Income Head FAQs – Income Tax Dept
🔵 Q2: Sirf profit batana zaroori hai kya? Loss ignore kar sakte hai?
A: Nahi bhai! Loss bhi report karna zaroori hai.
📍 Agar ₹1.5 lakh ka F&O loss hua aur ₹2 lakh ka capital gain hai – toh loss adjust kar sakte ho!
💡 Bonus: Loss carry forward bhi hota hai 8 saal tak – agar timely ITR file kiya ho!
👉 Set-off & Carry Forward Losses – Income Tax Dept
🔵 Q3: Kaunsa ITR form F&O trader ke liye sahi hai?
A:
ITR-3 – Agar aap detailed accounting kar rahe ho.
ITR-4 – Agar aap presumptive tax (Sec 44AD) le rahe ho aur income ₹50 lakh se kam hai.
💡 ITR choose karne se pehle profit, turnover aur compliance dekh lo.
👉 ITR Forms 2025 – Income Tax Dept
🔵 Q4: Kya brokerage aur internet bill bhi deductible hai?
A: Haan bilkul! F&O ek business hai, toh:
✅ Brokerage
✅ Internet/Phone bills
✅ Advisory charges
✅ Laptop depreciation
…ye sab business expenses deduct kar sakte ho.
💡 Cash me ₹10,000 se zyada ka expense? Careful!
🔵 Q5: Kya books of accounts maintain karna padega?
A: Haan, agar:
👉 Turnover > ₹25 lakh ya
👉 Income > ₹2.5 lakh
📒 Maintain karo: ledger, bank statements, contract notes, bills etc.
💡 Ye sab audit aur ITR ke time kaam aayega.
👉 Books of Accounts Rules – Income Tax Dept
🔵 Q6: F&O me turnover kaise calculate hota hai?
A: Absolute turnover = profit + loss (ignoring signs)
🧾 Example: ₹40,000 profit + ₹25,000 loss = ₹65,000 turnover
🔵 Q7: Kab audit karwana zaroori hai?
A:
✅ Turnover > ₹10 crore → Audit compulsory
✅ ₹2–10 crore turnover + profit < 6% → Audit lag sakta hai
✅ Digital turnover + presumptive scheme + profit ≥ 6% → No audit needed
👉 Tax Audit Rule 44AB – Income Tax Dept
🔵 Q8: Advance tax dena padega kya?
A: Agar total tax liability ₹10,000 se zyada hai, toh:
15% – June 15
45% – Sept 15
75% – Dec 15
100% – March 15
🎯 Presumptive tax? Toh full payment March 15 tak.
💡 Late payment = Interest under Sec 234B/234C
👉 Advance Tax FAQs – Income Tax Dept
✅ Extra FAQs on F&O Taxation
Q9: Kya F&O income presumptive scheme (44AD) me aa sakta hai?
👉 Haan, agar turnover ₹2 crore tak hai aur profit 6% ya usse zyada dikha rahe ho.
Q10: Kya salaried person bhi F&O trading income declare kar sakta hai?
👉 Bilkul! Salary + F&O income combine karke ITR-3 file karna hoga.
F&O trader ho aur tax compliance clear rakhna chahte ho? ✅ Apna ITR time pe file karo, losses adjust karo, aur unnecessary audit tension se bacho.
👉 Professional help ke liye apne CA se consult karo ya Income Tax e-Filing Portal visit karo.