Which ITR for Future & options income
This query is : Resolved
04 July 2022
Sir/mam,
Future and options profit raised income which head we have to show this income under Income tax head, which ITR form we have to use.
please guide me
Thanking you,
Future and options profit raised income which head we have to show this income under Income tax head, which ITR form we have to use.
please guide me
Thanking you,
04 July 2022
Show it as business profit file ITR 4 declaring minimum 6% profit on turnover.
Here turnover is aggregate of positive and negatives.
Here turnover is aggregate of positive and negatives.
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04 July 2022
Thank you sir for your reply, it comes under normal slabs rate of Income tax
04 July 2022
If your profit is more than 6%, then you can use ITR 4 and declare under the presumptive scheme. The turnover should be up to Rs. 10 crores.
If there is lower profit, then use ITR 3.
If there is lower profit, then use ITR 3.
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04 July 2022
Thank you Sir, The person is Senior Citizen 71 years and Having other income Rentals only which form
04 July 2022
As mentioned above use ITR 3 or 4 depending upon the profit of the business.
09 July 2022
Sir
Mam
Future and options
Example if any one invested 9 laks and received profit 4 laks
My doubt is I have to show directly 4 lakhs in inome from profit gains column
Or 6 percent on 4 lakhs in above column
Plz clarify my doubt
Mam
Future and options
Example if any one invested 9 laks and received profit 4 laks
My doubt is I have to show directly 4 lakhs in inome from profit gains column
Or 6 percent on 4 lakhs in above column
Plz clarify my doubt
03 August 2025
Here’s a clear breakdown for your F\&O income and filing ITR:
---
### 1. **Income Head for Futures & Options (F\&O) Profit**
* Income from F\&O trading is considered as **Business Income** under **Income from Business or Profession**.
* It is **not treated as Capital Gains**.
* You need to declare it under **Profits and Gains of Business or Profession**.
---
### 2. **Which ITR Form to Use?**
* If your **turnover (sum of absolute profits and losses)** is up to **₹10 crores**, you can opt for the **Presumptive Taxation Scheme** under **Section 44AD** or **44ADA** (for professionals).
* In this scheme, you declare **6% of turnover as taxable income**.
* Use **ITR-4** if opting presumptive taxation.
* If your **actual profits are less than 6% of turnover** or you want to declare the **actual profit**, you should file **ITR-3** and maintain proper books of accounts.
---
### 3. **Your Specific Doubt**
* **Example:** Invested ₹9 lakhs, profit ₹4 lakhs.
* The **turnover** for F\&O is computed as the **sum of absolute values of profits and losses** (both positive and negative legs), not just net profit.
* If you choose presumptive taxation:
* You **declare 6% of turnover (not 6% of profit)** as income, regardless of whether your actual profit is higher or lower.
* If actual profit is ₹4 lakhs, but 6% of turnover (say, total turnover is ₹20 lakhs, then 6% = ₹1.2 lakhs) is less than ₹4 lakhs, you can declare actual profit under ITR-3.
* So, you **don’t show 6% of profit**, you show either:
* **6% of turnover** (if presumptive), or
* **Actual profit** (if filing ITR-3 with books maintained).
---
### 4. **Additional Notes**
* As the person is a **senior citizen**, the tax slabs applicable will be as per senior citizen slabs.
* Income from **other sources like rent** will be declared separately in the return (ITR-3 or ITR-4 both allow this).
---
If you want, I can help you calculate turnover or prepare a sample return format. Want me to do that?
---
### 1. **Income Head for Futures & Options (F\&O) Profit**
* Income from F\&O trading is considered as **Business Income** under **Income from Business or Profession**.
* It is **not treated as Capital Gains**.
* You need to declare it under **Profits and Gains of Business or Profession**.
---
### 2. **Which ITR Form to Use?**
* If your **turnover (sum of absolute profits and losses)** is up to **₹10 crores**, you can opt for the **Presumptive Taxation Scheme** under **Section 44AD** or **44ADA** (for professionals).
* In this scheme, you declare **6% of turnover as taxable income**.
* Use **ITR-4** if opting presumptive taxation.
* If your **actual profits are less than 6% of turnover** or you want to declare the **actual profit**, you should file **ITR-3** and maintain proper books of accounts.
---
### 3. **Your Specific Doubt**
* **Example:** Invested ₹9 lakhs, profit ₹4 lakhs.
* The **turnover** for F\&O is computed as the **sum of absolute values of profits and losses** (both positive and negative legs), not just net profit.
* If you choose presumptive taxation:
* You **declare 6% of turnover (not 6% of profit)** as income, regardless of whether your actual profit is higher or lower.
* If actual profit is ₹4 lakhs, but 6% of turnover (say, total turnover is ₹20 lakhs, then 6% = ₹1.2 lakhs) is less than ₹4 lakhs, you can declare actual profit under ITR-3.
* So, you **don’t show 6% of profit**, you show either:
* **6% of turnover** (if presumptive), or
* **Actual profit** (if filing ITR-3 with books maintained).
---
### 4. **Additional Notes**
* As the person is a **senior citizen**, the tax slabs applicable will be as per senior citizen slabs.
* Income from **other sources like rent** will be declared separately in the return (ITR-3 or ITR-4 both allow this).
---
If you want, I can help you calculate turnover or prepare a sample return format. Want me to do that?
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