F&O Tax Calculator (India)
Futures & options income is business income, taxed at your slab rate. Enter your winning and losing amounts to see your turnover, net P&L, estimated tax, and whether a tax audit is likely. Calculated in your browser.
How F&O tax works
F&O trading is non-speculative business income. Your net profit is added to your other income and taxed at your slab. Turnover for audit purposes is the absolute sum of all profits and losses (favourable and unfavourable differences added together) — not your net figure. A tax audit under section 44AB can apply once turnover crosses the prescribed threshold (₹10 crore where almost all transactions are digital). F&O losses can be set off against other income (except salary) and carried forward for up to 8 years if you file on time.
FAQ
How is F&O income taxed in India?
Income from trading futures and options is treated as non-speculative business income. It is added to your total income and taxed at your applicable slab rate, not at a special capital-gains rate.
How is F&O turnover calculated?
As per ICAI guidance, F&O turnover is the absolute sum of profits and losses across all trades — that is, favourable and unfavourable differences are added together (ignoring the sign). This turnover figure is what decides the tax-audit requirement, not your net profit.
When is a tax audit required for F&O?
A tax audit under section 44AB can apply once turnover crosses the prescribed threshold (₹10 crore where at least 95% of receipts and payments are digital). An audit may also arise if you declare profits below the presumptive rate while your income exceeds the basic exemption. Confirm your exact position with a CA.
Can I set off F&O losses?
F&O losses are non-speculative business losses. They can be set off against most other income (except salary) in the same year, and unabsorbed losses can be carried forward for up to 8 years — provided you file your return on time.
Estimate for education only — not tax advice. Turnover computation, audit thresholds and slab rates depend on your full return and current law; confirm with a qualified chartered accountant.