F&O in ITR

For any professional or taxpayer reporting foreign assets (such as employer RSUs or ESPP held in foreign brokerage accounts like Fidelity/Schwab), disclosing them under Schedule FA Table A3 and Table A2 is mandatory every calendar year under the Black Money Act.

Converting individual vest lots using exact SBI TT buying rates manually can take hours. You can search online for the ITRFA tool—it processes raw broker CSV files directly and computes exact Table A2 and Table A3 numbers automatically for ITR-2.

In case of F&O, do not report the gross sale and purchase value of contracts. The turnover for Income-tax purposes is the Absolute Turnover as per the ICAI Guidance Note, i.e., the aggregate of absolute profits and losses from all F&O transactions (plus option premium received and other applicable adjustments). In ITR-3, report this as the business turnover and disclose the actual net profit or loss under Non-Speculative Business Income.

I'm not able to understand you let's say I have 80k loss and 20k profit , my turnover is 100k, so how would I show this in my ITR ? What I used to do was showing turnover as 100k and expense as balancing figure of 160k to show loss of 60k in itr . Is this correct?

F&O income is treated as BUSINESS INCOME (non-speculative) under the Income Tax Act, not capital gains. This determines everything about how you report it.

Key points for AY 2026-27:

Which ITR form: ITR-3 if you have F&O income along with salary or other income. ITR-4 (Sugam) does NOT apply for F&O; you cannot use presumptive taxation for derivatives.

Tax audit requirement: Under Section 44AB, if your F&O turnover (sum of absolute values of profits and losses) exceeds Rs 10 crore, audit is mandatory. Below Rs 10 crore, no audit IF your profit is at or above 6% of turnover. If profit is below 6%, you need an audit.

Set off of F&O losses:
- F&O losses can be set off against any business income in the SAME year
- Unabsorbed F&O losses can be carried forward for 8 years under Schedule CFL
- They CANNOT be set off against salary income

Turnover for F&O purposes: is the sum of all positive (profit) legs and all negative (loss) legs, i.e. absolute value of each trade outcome. This is different from total contract value.

For the complete tax audit thresholds and Form 3CB/3CD requirements, this [tax audit Section 44AB guide](https://taxgarden.in/blog/tax-audit-section-44ab-thresholds-form-3cd) covers the rules in detail.

You are incorrect about Tax audit point, if you have never taken presumptive scheme, than there is no need for you to do tax audit even if you have shown loss, if we go with your logic that you have to show profit of 6% of your turnover or else you have to conduct tax audit to carry forward loss then every small startup or new business will get a burden of conducting tax audit irrespective of their size of turnover.