Filing ITR for Intraday and F&O Trades


I am trying to file IT returns for FY 19-20. I have below trading activities done over the past year.

Intraday Trading -

Turnover - 2000/-
Loss - 1200/-

F&O Trading -

Turnover - 7000/-
Loss - 4500/-

Salary is more than 10 Lakhs per year.

how can i show this during tax filing? Do i need an audit? Do i need to maintain Book of accounts as my transactions are very less.

@Quicko @ShubhS9

Hey @nyk

You should report your:

  1. Trading activities under the head ‘Income from Business/Profession’
  • Intraday is treated as speculative business income therefore your Intraday loss can be set off only against income from speculative business income and carried forward to 4 years.
  • F&O is treated as non-speculative business income and is taxed at the applicable income tax slab rate. Loss from non-speculative business income can be set off against any income except salary income and can be carried forward to 8 years.
  1. Salary income should be reported under the head ‘Income from Salary’ and will be taxed at the applicable slab rate.

  2. Tax Audit is applicable when (i) Profit is below 6% off the turnover, (ii) turnover is above the threshold. You can use this tool to determine your tax audit applicability

  3. You can use your Zerodha TaxPNL statement for your books of accounts.

Hope this helps :slight_smile:

Which ITR one should file if they have only trading income (EQUITY/FNO)

Hi @anon31396786

Trading income is treated as Income from Business/Profession therefore you should file ITR 3. You can use this tool to determine which ITR form to file:

PS: when filing your ITR using Quicko, we automatically choose the right ITR Form for you based on your Income situations, so you don’t have to worry about getting it wrong :slight_smile: