F&O turnover & tax audit calculator

Method: ICAI Guidance Note on Tax Audit · limits for FY 2026-27

Futures and options turnover for income tax is not the contract value. Enter your trade-wise profits and losses to get your turnover, net result and whether a tax audit applies.

Total of profitable trades (₹)

Total of loss-making trades (₹)

Used presumptive tax (44AD) in the last 5 years?

Your broker's tax P&L report lists the profit or loss of each trade (or each contract per day). Option premium received is already inside each trade's profit or loss, so it is not added again.

Turnover₹9,70,000

Net result−₹70,000

Profitable trades (total)	₹4,50,000
Loss-making trades (total, as positive)	₹5,20,000
Turnover	₹9,70,000

Tax audit not required on turnover

Turnover is within the ₹10 crore limit. You file ITR-3 and can carry a loss forward if the return is filed by the due date.

How F&O turnover is calculated

Under the ICAI Guidance Note on Tax Audit, turnover from futures, options and intraday trades is the sum of the absolute profit or loss of each trade: a ₹5,000 profit and a ₹3,000 loss make a turnover of ₹8,000, not ₹2,000 and not the contract value. Since the 2022 revision, the premium received on sold options is not added separately — it is already part of each trade's profit or loss.

Tax treatment: F&O income is non-speculative business income, taxed at your slab rate and reported in ITR-3. A loss can be set off against other business income (not salary) and carried forward for 8 years if you file on time. Intraday equity is speculative business income, with its own 4-year carry-forward. Read more about F&O expiry, and check the brokerage calculator for trading costs.

From tax year 2026-27 the Income-tax Act, 2025 applies: the tax audit section (44AB in the old Act) is section 63, with the same turnover limits. This calculator is a guide, not tax advice — confirm with a chartered accountant before filing.

Frequently asked questions

How is F&O turnover calculated for income tax?

Add up the absolute value of the profit or loss of every trade: profits and losses are both counted as positive numbers. The contract value and the premium are not turnover.

When is a tax audit required for F&O traders?

When F&O turnover is above ₹10 crore (all F&O trades go through the bank). Below that, an audit can still apply if you opted out of presumptive taxation within the last 5 years and your income is above the basic exemption limit.

Do I need a tax audit if I made a loss in F&O?

Not because of the loss alone. If turnover is within ₹10 crore and you have not used presumptive taxation in the last 5 years, a loss on its own does not require an audit.

Which ITR form is used for F&O income?

ITR-3, because F&O income is treated as business income.