F&O profit in ITR

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies how to declare profits and losses from Futures & Options (F&O) trading in your Income Tax Return (ITR). The consensus is that F&O business income and related expenses should be reported under the 'Trading Account' section, specifically 'Revenue from Operations' for profits and 'Direct Expenses' for losses. Transaction charges like GST, STT, and brokerage should also be accounted for within the Trading Account where applicable, ensuring the net profit matches your broker's statement.

Priya

Priya (Querist)

15 July 2024 Should I be declaring my personal F&O profit in
Trading Account -> Revenue from Operations -> Sales / Gross receipts of business -> Other operating revenues as "Profit from F&O trading"

Or, should it be in
Profit and Loss -> Other income -> Any other income as "Profit from F&O trading"

Last year, I had loss from F&O and I had put it under
Trading Account -> Direct Expenses -> Other direct expenses as "Loss from F&O trading"

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

15 July 2024 Being your business income, it should be filled under Schedule Trading.

Message likes : 1 times

Priya

Priya (Querist)

15 July 2024 Thank you.
Does this mean, any expenses/taxes paid (GST/STT/Stamp Duty/Sebi fees/exchange transaction charges/brokerage) also goes in
Schedule Trading Account -> Duties and taxes, paid or payable, in respect of goods and services purchased

Last year I actually put the charges in:
Profit and Loss -> Rates and taxes, paid or payable to Government or any local body (excluding taxes on income)
and
Profit and Loss -> Other expenses

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

15 July 2024 These expenses can be filled in Schedule P&L, wherever applicable. Match the net profit as per the broker's statements.

Message likes : 1 times

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

25 August 2024 You are welcome.

Priya

Priya (Querist)

02 September 2024 Thanks for the help.