Trade derivatives? Your ITR is a different game.

Because the Income Tax Act classifies derivatives trading as a non-speculative business, not as capital gains. That means you file ITR-3 with a business profit-and-loss schedule and turnover-based rules — but it also lets you claim trading expenses and set off losses widely, which capital-gains treatment would not. It is a different framework from share investing, and filing it that way is essential.

For most retail traders, no. With 95%+ digital transactions, an audit applies only above ₹10 crore of computed turnover — and turnover here means the sum of absolute profits and losses, which is far smaller than contract value. We compute it precisely and give you a documented yes/no verdict, then handle the audit only if it genuinely applies.

Please do not. File ITR-3 by the due date and your F&O loss carries forward for up to eight years to set off against future business and F&O profits. Skip the filing and that shield is gone for good — meaning a future profitable year is taxed in full. Filing a loss year is one of the most valuable things a trader can do.

Per ICAI guidance, F&O turnover is the aggregate of absolute profits and losses on your trades — every winning and losing trade added as a positive figure — not the notional value of the contracts. This is why the turnover number that decides your audit position is usually far smaller than traders fear. We compute and document it from your broker statement.

Sometimes. Declaring 6% of turnover as income under Section 44AD can simplify life for small, profitable traders. But opting out in a later year locks you out of the scheme for five years and can trigger an audit requirement, so it is not a default choice. We assess whether it genuinely benefits you before recommending it.

The legitimate costs of earning trading income: brokerage and exchange charges, STT where allowed, advisory and market-data subscriptions, internet, a proportionate share of rent and electricity for a trading setup, and depreciation on your computer. Claiming these against your F&O income is a core benefit of business-income treatment, and we make sure none are left out.

In one ITR-3 that reconciles both. Your salary from Form 16 and your F&O business income are reported together, consistently, so the two do not contradict each other or the AIS. Filing them separately or in the wrong form is a common trigger for defect notices, which integrating them into a single correct return avoids.

No. Intraday equity trading is speculative business income with its own set-off rules, while F&O is non-speculative business income. They must be reported separately within the return, because speculative losses can generally only be set off against speculative gains. We split them correctly so each is taxed and carried forward under the right rules.

F&O income is subject to advance tax, payable in quarterly instalments across the year, and shortfalls attract interest under Sections 234B and 234C. Because trading income is variable, we help you estimate and plan these instalments so June and September do not bring a nasty surprise, and your final filing has no large interest attached.

Yes. Your broker statements, ledgers and personal details are stored securely, used only to prepare your return, and never shared. You can request deletion after filing. All handling follows India’s Digital Personal Data Protection (DPDP) Act, so your trading activity stays private throughout the process.