ITR-Capital Gain

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This discussion clarifies how to report equity derivatives for Income Tax Returns (ITR). Unlike regular equity, derivatives are not reported under capital gains. Instead, they should be declared as business income or loss under the Profits and Gains from Business or Profession (PGBP) section, typically requiring ITR-3. If you previously filed using ITR-2, you will need to switch to ITR-3 for reporting derivatives.

jaya

jaya (Querist)
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24 July 2026 Hi,

i downloaded capital gain statement...in that therez one equity derivative and equity (STT paid) sheet...do i have to mention derivative amount anywhere in ITR??

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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24 July 2026 Yes, equity derivatives must be reported in the ITR, but not under Capital Gains. They must be declared as business income or loss under PGBP (Profits and Gains from Business or Profession), usually using ITR-3.

jaya

jaya (Querist)
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30 July 2026 Ok..thanx..but if a person use to file ITR 2 in previous year then he has to change the form??also where to mention..i mean code for business /professional income

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