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For tax, F&O trading is a business. Its turnover is not the contract value: it is the sum of the absolute profit or loss on every trade (futures and options), plus — on the ICAI guidance most practitioners follow — the premium received on options you sold where the premium is not already in the profit. The turnover decides whether an audit is due and whether the presumptive route is open.

Futures: profits
₹
Futures: losses
₹
Options: profits
₹
Options: losses
₹
Premium on options sold (not in P&L above)
₹
Leave 0 if your broker's P&L already nets sold premium
Digital share100%
%
≥95% raises audit limit to ₹10 cr
Other income₹12.00 L
₹
After using the scheme earlier

Results

Turnover for tax₹24.20 Labsolute P&L of trades
AuditNot requiredturnover at or below ₹10 crore
Net F&O result₹80,0003.3% of turnover
Presumptive income (6%)₹1,45,200open to you
Guidance, not advice: the thresholds are the Income-tax Act's; how a broker's statement maps onto them (especially sold-option premium) is a matter for your chartered accountant. Losses set off against other business income and carry forward eight years when the return is filed in time; the ITR-3 form applies.

Assumptions & formula

Sections 44AB, 44AD as amended to FY 2026-27 · ICAI guidance note on tax audit (turnover of derivatives) · checked 28 Oct 2026
Turnover = Σ |profit or loss per futures trade| + Σ |profit or loss per options trade| (+ premium on options sold, where not already in the result) · audit if turnover > ₹1 crore (₹10 crore when at least 95% of receipts and payments are digital) · with turnover ≤ ₹2 crore the presumptive scheme deems 6% of turnover as income; leaving it after use triggers an audit for five years when profit is declared below 6% and total income exceeds the exemption limit
  • Trade-level profits and losses as your broker's tax P&L statement lists them.
  • Intraday equity is speculative business and counted separately; delivery trades are capital gains — neither belongs here.

Calculators are for information and planning. Outputs depend on the inputs and assumptions you enter and are not a recommendation to buy, sell or hold any security or product. Streetgains Technologies Private Limited is a SEBI Registered Research Analyst (INH000017082); it is not a loan provider, tax adviser or mutual fund distributor.