FnO Turnover and Profit in ITR

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This query is : Resolved

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This discussion clarifies how to report Futures & Options (FnO) turnover and profit in your Income Tax Return (ITR). It explains that you should show the net profit or loss in your Profit & Loss (P&L) statement after deducting all expenses, including GST and STT. The turnover for tax audit purposes is calculated as the sum of all profits and losses. Realised profits are relevant for tax audit applicability, and F&O losses can be adjusted against short-term and long-term capital gains. For the balance sheet, you can include bank balances, investments from demat holdings, and capital assets.

Keyur

Keyur (Querist)
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13 September 2025 Sir,

I have little confusion for preparation of pnl ad b.sheet.

1) in pnl we have to mentioned in total Sell Value and total purchase Value ? Or we have yo shown directly profit or loss??
In some video opinion are different!!

2) Absolute Value of Realized profit only calculation for applicability of Tax Audit?? It is not effected in pnl right??

3) in b.sheet can we mentioned only bank balance, investment balance of only Value based on holding statements in demat account?? And capital assets ,if any?

Please guide me urgently
Thank

Keyur

Keyur (Querist)
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13 September 2025 Following charges allowed in FnO trading pnl?

1. GST paid
2. STT paid
3. Other incident expenses

Keyur

Keyur (Querist)
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13 September 2025 Is fno loss are adjusted in STCG & LTCG?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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14 September 2025 1 Turnover is sum of profit and loss.
Show net of profit and loss in p and l.
Deduct expenses including GST.
2 Calculate turnover for tax audit as above mentioned.
3 yes.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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14 September 2025 Yes, adjust f&o loss against short term capital gains.

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