future n options

Yes he can file ITR 3 and futures and option sales shall be shown under specified business as speculation business.

You can file it as normal business by preparing P&L.Net profit shall be declared as income.

Calculation of turnover in case of F&O Trading

Turnover must be firstly calculated, in the manner explained below:

1. The total of positive and negative or favorable and unfavorable differences shall be taken as turnover.
2. Premium received on sale of options is to be included in turnover.

Here, it makes no difference, whether the difference is positive or negative. All the differences, whether positive or negative are aggregated and the turnover is calculated.

Expenses

Expenses such as postage, conveyance and telephone, incurred for carrying on the business can be claimed as business expenses. You can also claim depreciation on assets used for the business or profession.