Treatment of Losses from Future and Options Trading in Income Tax Return

This query is : Open

Siera Sunu Kurian (Querist)
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28 August 2025 Hello there
I have a new query regarding the treatment of Futures and Options trading conducted by a person through their share trading platform like Zerodha etc. I understand from sources online that the Futures and Options trading is considered as a non speculative business and it should be shown in ITR 3 where the turnover is the absolute sum of the profits and losses. This is a scenario where I come across a friend who has net losses from F and O trading, how is this person supposed to show losses in his ITR. The doubt also lies in what to mention as turnover, what expenses to show in profit and loss statement and what to do about entries required in balance sheet. Please do acknowledge if anybody knows how to proceed. Thank you.

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