How to declare F&O as business income in India

Tue, 12 May 2026 00:00:00 +0000

Futures and options (F&O) trading on a recognised stock exchange is treated as non-speculative business income under the Income Tax Act 1961. This classification has significant practical implications: F&O losses can be set off against other heads of income (except salary), carried forward for eight years, and deducted against future business profits. This guide explains the statutory basis, the correct method of computation, allowable deductions, and how to report F&O income in ITR-3 .

How to report intraday speculative income in ITR-3

Tue, 12 May 2026 00:00:00 +0000

Intraday equity trading, buying and selling the same share on the same trading day without taking delivery, is classified as a speculative transaction under section 43(5) of the Income Tax Act 1961. The income or loss from intraday trading is treated as speculative business income, which must be reported in ITR-3 . This guide covers the end-to-end procedure for declaring intraday income using data from Zerodha Console .

Section 43(5) on WebNotes

How to declare F&O as business income in India

How to report intraday speculative income in ITR-3