Advance tax FNO profit

Income Tax 2025 Advance Tax
1

Hi, I am salaried person. I have incurred FNO losses in last 2-3 years and same was reported in ITR to carry forward losses.

This year if I am profitable in first quarter but profits are less than the carried losses from previous year.

Do I still have to pay advance tax or I shall add my previous losses to calculate advance tax with current year profits

2

Hi @Vikram511

As you have incurred fno loss during the previous 2 years, the losses are allowed to be set off from the income you earn from trading in the 1st quarter. And you should pay the advance tax on the balance income. It’s good that you are profitable now

3

:bar_chart: How F&O Profit is Taxed

  • F&O trading falls under Income from Business or Profession

  • You are taxed as per your income tax slab

  • You can deduct expenses like brokerage, internet, advisory fees, etc.

:money_bag: Advance Tax on F&O Profit

If your total tax liability exceeds ₹10,000 in a financial year, you must pay advance tax.

:date: Due Dates for Advance Tax

You need to pay tax in installments:

  • 15 June → 15% of total tax

  • 15 September → 45% (cumulative)

  • 15 December → 75% (cumulative)

  • 15 March → 100% (cumulative)

:backhand_index_pointing_right: Even if your F&O income fluctuates, you should estimate profits and pay accordingly.

:warning: What if you don’t pay?

Interest will be charged under:

  • Section 234B → for non-payment

  • Section 234C → for delay in installments

:receipt: Important Points for F&O Traders

  • F&O profit/loss is non-speculative business income

  • Losses can be carried forward for 8 years

  • If turnover exceeds limits, audit may be required under Section 44AB

  • You may opt for presumptive taxation under Section 44AD (with conditions)

:abacus: Simple Example

  • Profit from F&O: ₹5,00,000

  • Other income: ₹3,00,000

  • Total income: ₹8,00,000

:backhand_index_pointing_right: Calculate tax as per slab → if total tax > ₹10,000 → advance tax applicable.