ITR – F&O and Capital Gains (Tax Audit Case)

Derivatives trading is non-speculative business income. Intraday equity trading is speculative business income. Delivery-based shares, mutual funds and property fall under capital gains, split between short term and long term. One person often has all of these in the same year, and each carries its own computation, set-off and carry-forward rules.

A tax audit may be required depending on your turnover, the profit you declare and whether you have opted out of presumptive taxation. Turnover for derivatives is not the contract value shown by your broker; it is computed under a specific method. Getting that figure wrong changes whether an audit applies at all.

Our in-house team reads the broker's tax P&L and ledger, computes turnover, classifies each stream of income, works out set-off and carry-forward of losses, and reconciles everything with your AIS and Form 26AS. Where an audit applies, we coordinate the audit report and have it filed before the return.

The process

100% digital and hassle-free