Capital income or F&O income

This query is : Resolved 

22 March 2025 My query is - When option contract is exercised on Expiry day, we need to give physical delivery of stocks from our Demat Holding to broker for physical settlement. Is giving physical delivery of stocks consider as Capital Gain/loss or F&O income?
As Giving physical delivery from Demat Holding is considered as "Sale of stocks".
So, is it needed to report in ITR as Capital income or F&O income ?

22 March 2025 Physical delivery upon exercising an options contract is treated as a sale of stocks, and any resultant gains or losses should be reported as capital gains or losses in your ITR, not as F&O income.

30 September 2025 Good luck....


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