Categories of FNO transaction

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This discussion clarifies how to categorise Futures & Options (FNO) transactions for tax purposes. While previously distinct categories were needed, for FY 2024-25, FNO transactions are generally treated the same for tax. You can report your total turnover, expenses, and net profit/loss under Schedule 'BP' (Business Profits) if trading is considered a business, using ITR-3 or ITR-4.

Keyur

Keyur (Querist)

02 June 2025 Sir/Madam

One of my friend have made FNO during the fy 2024-25 and he want to prepared tax computation. How he is to know Categories of FNO scripts??

FNO transactions are made through Grow platform.

Thanks in advance

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

02 June 2025 - Index Futures & Options – Includes major indices like Nifty 50 and Bank Nifty.
- Stock Futures & Options – Individual stocks that meet liquidity and volume criteria.
- Sectoral Futures & Options – Derivatives based on specific industry sectors.
- Commodity Futures & Options – Includes commodities like gold, crude oil, etc.
- Currency Futures & Options – Derivatives based on currency exchange rates.

Keyur

Keyur (Querist)

02 June 2025 Thank you sir for prompt reply.

But Sir how to categories individual scripts and P&L report generated in Grow App. not mentioned categories!!!

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

02 June 2025 Unless index in nature all or them would be under stock F&O.

Nikhil Kaushik

Nikhil Kaushik (Expert)

03 June 2025 why do you need to categorize F&O transactions separately?

Keyur

Keyur (Querist)

03 June 2025 I am not able import file in tax computation software. I need to add categories in each line items.

One more thing I need to know, can he has to get ca certificate for filling tax return?? If he earn profit or loss case?

Nikhil Kaushik

Nikhil Kaushik (Expert)

04 June 2025 Earlier distinction was required as turnover calculation differed for options and future. no need to categorize anymore as both options and futures are taxed in the same manner.

Keyur

Keyur (Querist)

04 June 2025 Thanks for prompt replied

So. I can shown in one single line total purchased, sales and net profit in preparation of tax computation for fy 24-25.

Under which section I will have to show it?

Thanks

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

12 August 2025 Report under Schedule 'BP' (Business Profits) if trading is a business.

You can show total turnover (sum of absolute gains and losses), expenses (brokerage, etc.), and net profit or loss.

In ITR-3 or ITR-4 (if presumptive), include F&O income as business income.

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