F&O Trader filing question

As an F&O trader, is it necessary to fill in the assets and liabilities section such as cash balance, bank balance, proprietors capital etc under the business/profession section of Incomes? Or can I leave these sections blank?

@AkashJhaveri @Saad_C @Divya_Singhvi @Laxmi_Navlani @Sakshi_Shah1 @Kaushal_Soni can you?

Hi @ranjit

F&O Income is treated as Business Income. Thus, if you opt for ITR 3 with books of accounts you have to prepare Balance Sheet, Profit & Loss Statement and enter all the financial details. You can even opt for Presumptive Taxation scheme if you are eligible for. In that case there is no need to prepare any financial statements.

I don’t understand this recommendation of presumptive taxation at all.

What if you’ve incurred losses and can actually set off those losses including expenses with other sources of income such as interest, etc.

Why will I increase my tax burden even more by going for presumptive taxation? Everywhere I go, I find people recommending this presumptive taxation and it just doesn’t make sense!

Hi @gurjot_ahluwalia

Presumptive taxation scheme is recommended only when your profits are more than or equal to 6% of Turnover and Turnover is not exceeding 2 crore. Thus, if you have losses or profits less than 6% of Turnover, the scheme is not recommended.

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For F&O trading, do I need to show my savings account balance in current asset under bank balance…??

Hey @Akshay_Yelve, savings account balance at the end of the financial year needs to be shown whilst preparing the balance sheet.

Even if it is personal savings account…?? And out of two savings account which balance to show or both as combined…??

(Initial capital to fund the trading is taken from one of the savings account)

Yes, you need to add the aggregate amount.

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Hi Team, I am having salary , Capital gain from equity and F and O income. From your portal i have understood that I need to file ITR 3. Request you to please answer the following questions:-

  1. What all schedules do i need to fill- My assumption is Salary, Capital Gain, Business Income, deductions Chapter VI. Do i need to fill balance sheets and P& L as well

  2. My Options Turonver is 1.87L and profilt is 70K, i.e 38%, do i need to go an audit?

  3. I always fill ITR2, so this year for F and O income, what extra information do i need to fill in ITR 3

  4. What are the charges for your platform in this case


While preparing BS, what amount must be considered as Proprietor’s capital? What should be considered as asset for salaried person? I am also invested in MF,Stock,SGB, so will that be considered as asset ? How to tally Asset and Liability? Where to mention Options turnover?