• ITR filing in Futures and Options Trading

How to fill Sales , Purchase figures in IT Return for Futures and Options Trading if assessee is showing derivatives trading as business income. Also how to arrive at NP ratio in such case in Form 3CD
Asked 3 months ago in Income Tax

you need to make profit and loss and balance sheet in such cases from the statement provided by stock broker 

Vidya Jain
CA, Kolkata
941 Answers
41 Consultations

4.8 on 5.0

- Trading in derivative is treated as business income only and not capital gain. If there is a loss and total income is more than maximum exemption limit then audit is must to carry forward the losses. If there is no loss or you do not want to carry forward the loss and total income is more than exemption limit then pay tax on 6% of turnover. In such case turnover for tax audit would be sum of profit and losses (treated as positive) for each transaction. 


- You can show entire sale value in sales column and purchase value in purchase column or sum of profits in sales value and sum of losses in purchase value. The objective is to arrive the Net loss or profit figure. It is advisable to show entire sale value and purchase value. Show expenses like brokerage, STT, GST paid, Stamp duty expenses, transaction charges in other expenses.

Vivek Kumar Arora
CA, Delhi
4063 Answers
338 Consultations

5.0 on 5.0

As far as income tax return is concerned CPC has mentioned in one of its seminar that such trader have to just mention their gain or loss in profit and loss in ITR.


Hope you find the above information helpful if you do please rate it 5 and if you need any further discussion you can book a phone consultation.

Thank you

Naman Maloo
CA, Jaipur
3791 Answers
45 Consultations

5.0 on 5.0

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