F&O & Intraday Trading Tax Calculator
This intraday tax calculator works out tax on futures, options and intraday equity trading for FY 2025-26 (AY 2026-27). It checks your turnover against the tax audit limit, sets off losses, and compares slab tax under the new and old regimes. Runs in your browser; nothing is uploaded.
Use the profit and loss figures from your broker's P&L report, before charges.
A worked example
Say your only income for the year is Rs 8,00,000 of F&O profit, with no salary or other income. Turnover for the audit check is Rs 8,00,000, well under the Rs 1 crore limit, so no tax audit is triggered. Taxed as business income under the new regime, Rs 8,00,000 falls inside the Rs 12 lakh rebate limit, so the tax works out to Rs 0. Under the old regime, with no deductions entered, the same income comes to Rs 75,400 including cess. That gap is exactly why it is worth running both regimes before you file, not just defaulting to whichever one you used last year.
Understanding the calculation
- F&O is non-speculative business income
- Futures and options on a recognised exchange are business income, taxed at slab rates. They are non-speculative even though nothing is delivered, which is why F&O losses can be set off against most other income.
- Intraday equity is speculative
- Same-day squared-off share trades are speculative business income. Profit is taxed at slab rates, but a loss can only be set off against speculative profit.
- Turnover
- The sum of the absolute profit or loss on each trade, ignoring the sign, per the ICAI Guidance Note on Tax Audit. It is not the notional value of your contracts, and option premium is not added on top.
- Set-off order used here
- A speculative loss is parked for carry-forward. An F&O loss is set off against intraday profit first, then earlier-year losses are applied (earlier speculative losses only against speculative profit), then any remaining F&O loss is set off against your other income, and whatever is left is carried forward.
- The presumptive option
- Under Section 44AD you declare 6% of F&O turnover as profit instead of your actual result, if turnover is up to ₹3 crore and receipts are digital. The comparison above replaces only your F&O profit with that deemed figure and leaves your intraday, other income and deductions unchanged. Intraday trading is speculative and is not part of the comparison.
- New vs old regime
- Both are computed for a resident individual below 60. New regime: nil up to ₹4 lakh, then 5%, 10%, 15%, 20%, 25% in ₹4 lakh steps, 30% above ₹24 lakh, with a rebate that makes income up to ₹12 lakh tax-free (and marginal relief just above it). Old regime: nil up to ₹2.5 lakh, 5% to ₹5 lakh, 20% to ₹10 lakh, 30% above, with a rebate for income up to ₹5 lakh. Cess is 4% on both. The standard deduction is not applied since this is business income.
Common questions
Is F&O income taxed as capital gains?
No. Profit or loss from futures and options trading is business income, specifically non-speculative business income, and is taxed at your normal slab rates, not at the flat capital gains rates. It is reported under the head Profits and Gains of Business or Profession, generally in ITR-3.
Is intraday equity trading speculative income?
Yes. Intraday trades in shares, where the position is squared off the same day without delivery, are treated as speculative business income. It is also taxed at slab rates, but losses from it can only be set off against other speculative income, which is a stricter rule than for F&O losses.
How is turnover calculated for F&O?
Under the ICAI Guidance Note on Tax Audit, F&O turnover is the sum of the absolute profits and absolute losses across your trades, meaning you add up the profit or loss on every trade ignoring the sign. Option premium received on selling is not added on top. Intraday equity turnover is worked out the same way. This calculator adds the two together for the audit check.
When is a tax audit required for F&O and intraday traders?
Under Section 44AB(a), a tax audit applies when business turnover exceeds Rs 1 crore, or Rs 10 crore if your cash receipts and payments are each 5% or less of the total, which is normally true for exchange-traded trading. There is a separate trigger, Section 44AB(e), for people who have used the presumptive scheme under Section 44AD in the past and later declare a lower profit. If in doubt, ask a Chartered Accountant, because the consequences of missing an audit are a penalty.
How long can trading losses be carried forward?
F&O (non-speculative) losses can be carried forward for 8 assessment years and set off against any business income in those years. Speculative (intraday) losses can be carried forward for 4 assessment years and set off only against speculative income. In both cases you must file your return by the original due date for the loss year, or you lose the right to carry the loss forward.
Which trading expenses can I deduct?
Since this is business income, genuine costs of trading such as brokerage, exchange transaction charges, SEBI fees, GST on those charges and Securities Transaction Tax can be deducted from your trading profit. Other business costs such as data or software subscriptions may also qualify if properly documented. Enter the total in the expenses field of this calculator.
Which ITR form should an F&O or intraday trader file?
ITR-3, because the income is business income. ITR-4 is only for those using the presumptive taxation scheme. Even if you have a loss, you should file on time so that the loss can be carried forward.
Can an F&O trader use the presumptive scheme under Section 44AD?
Section 44AD lets an eligible resident individual, HUF or firm with turnover up to Rs 3 crore (Rs 2 crore if more than 5% of receipts are in cash) declare a deemed profit of 6% of turnover for digital receipts, and skip the tax audit. F&O is non-speculative business income and the section does not exclude it, so many advisers treat it as available, but it is a judgement to confirm with a Chartered Accountant. Under it you cannot claim expenses separately or carry forward an actual loss, and if you later declare less than the deemed profit or leave the scheme you cannot use it for five years and may need an audit.
Which year does this calculator cover?
FY 2025-26 (assessment year 2026-27), under the Income-tax Act, 1961, with the slab rates and rebate for that year. From 1 April 2026 the new Income-tax Act, 2025 applies, with re-numbered sections and some changes to audit rules for presumptive-scheme filers, so treat this tool as a guide for the earlier year and confirm current rules with a Chartered Accountant.