How to File ITR-3 for F&O Traders: Step-by-Step Guide (AY 2026-27)
Note: This is general information, not tax advice, and tax rules change. Verify the current figures against the Income Tax Act, the relevant Finance Act and ICAI guidance, and confirm your own position with a qualified Chartered Accountant.
What to collect before you open the portal
Filing ITR-3 without the right documents means guessing, which means errors. Gather these before you start:
Broker P&L statements for FY 2025-26, covering every segment: F&O, equity intraday, and equity delivery. Download from each broker you traded with. If you used multiple brokers, you need all of them.
Form 26AS from the Income Tax portal (under Annual Information Statement section). This shows TDS deducted, advance tax paid, and other credits.
AIS (Annual Information Statement) from the same portal. AIS shows all securities transactions that exchanges reported about you. Cross-check it against your broker P&L before filing. Read the AIS vs Form 26AS guide if you have discrepancies.
Advance tax payment challans (from your bank or the tax portal) for all four installments paid during the year.
Expense records: brokerage bills, internet bills, software subscription invoices, advisory fee receipts. Any expense you plan to deduct needs a record.
Step 1: check audit applicability before anything else
Audit applicability determines your filing deadline and whether you need a CA to certify the return. Run the check before you start filling.
The rules: audit is mandatory if F&O turnover exceeds โน10 crore, or if you report a loss or under-6% profit and your total income exceeds the basic exemption limit and 44AD presumptive filing is not used. The second condition, Section 44AB(e), is the one that catches salaried traders in a losing year.
Step 2: compute your figures before touching the portal
Calculate these numbers offline first. Filling them directly into the portal without prior computation leads to errors you cannot easily spot on screen.
F&O turnover (ICAI absolute-sum method): the absolute sum of realised profit and loss across all F&O contracts. See how to calculate F&O turnover.
Intraday equity turnover if applicable: absolute sum of net daily settlement per scrip.
Net F&O profit or loss: gross P&L minus all deductible expenses. See the deductible expenses checklist.
Capital gains from delivery equity if any: STCG (20%) and LTCG (12.5% above โน1.25 lakh) calculated per the STCG/LTCG guide.
Aktai Tax computes all of the above from your uploaded broker files and produces a tax-ready summary. Upload at Aktai Tax and use the output as your source for the numbers below.
Step 3: open ITR-3 on the Income Tax portal
Log in at incometax.gov.in. Go to e-File, then Income Tax Returns, then File Income Tax Return. Select AY 2026-27 and ITR-3. Choose to file online (the JSON offline utility is an alternative but the online form is simpler for most traders).
Most of your personal details (PAN, address, bank accounts) will be pre-filled from the previous year or from PAN records. Verify them before proceeding.
Step 4: fill Schedule BP (business and profession)
Schedule BP is where your trading income lives. It has two relevant sections:
Non-Speculative Business (F&O): Enter your gross F&O receipts (total absolute-sum turnover is not what goes here; receipts means total P&L before netting losses). Then enter expenses. The system computes net profit. Enter your ICAI turnover in the turnover field.
Speculative Business (intraday equity): Enter separately in the speculative sub-section. Speculative and non-speculative figures must never be mixed.
Books of accounts: The schedule asks whether you maintained books. If your income or turnover crossed the Section 44AA threshold, say yes. You do not upload the books, but you are declaring that you maintained them.
Step 5: fill Schedule CG if you have delivery equity
If you have gains or losses from delivery-based equity (shares held overnight or longer), these go into Schedule CG, not Schedule BP. The schedule splits into STCG and LTCG sub-sections.
Enter the cost of acquisition, sale consideration, and holding period for each batch of shares sold. For LTCG on shares bought before 31 January 2018, use the grandfathered cost (higher of actual cost and closing price on 31 Jan 2018).
The โน1.25 lakh LTCG exemption is applied automatically by the system after you enter all LTCG transactions. You do not need to manually subtract it.
Step 6: enter salary and other income heads
If you are also salaried, enter salary details in Schedule S. Your employer's TDS appears in Form 26AS and will be auto-populated in many cases. Verify it against your Form 16.
Interest income from savings accounts, FDs, or bonds goes in Schedule OS (Other Sources). The โน10,000 savings account interest deduction under Section 80TTA is entered in Schedule VI-A if you choose the old regime.
Step 7: tax computation and regime choice
At the tax computation stage, the portal shows you the liability under both regimes. Pick the one that results in lower tax. F&O traders can switch regimes each year. Trading expenses are deductible under both because they reduce your business profit before the regime calculation begins. Read the full new vs old regime comparison if you are undecided.
Check the 87A rebate position. Under the new regime, the rebate eliminates tax if total income is โน12 lakh or below, but STCG and LTCG are excluded from the rebate.
Step 8: advance tax and TDS reconciliation
The portal pre-fills advance tax and TDS from Form 26AS. Cross-check these against your challan records. If you paid advance tax and it is not appearing, enter it manually using the BSR code and challan number from your receipt.
Interest under 234B (default in payment of advance tax) and 234C (deferment of installments) is computed automatically. If you underpaid advance tax, the interest appears here as a liability before the final tax due figure.
Step 9: verification and filing
After reviewing the complete return, verify it. The fastest method is Aadhaar OTP, which completes verification immediately. Net Banking and Demat account options are also available. E-verification is preferred over sending a physical ITR-V, which takes longer.
Once submitted and e-verified, save the acknowledgment number. You will need it to track processing status and to respond to any future 143(1) intimation.
Frequently asked questions
Can I file ITR-3 myself or do I need a CA?
You can file ITR-3 yourself using the Income Tax portal. If a tax audit under Section 44AB is required, the audit report must be filed by a Chartered Accountant before you file the return. Most traders below the audit threshold can self-file, though a CA review is advisable for complex situations.
What is the due date for ITR-3 for AY 2026-27?
For non-audit cases, the due date is 31 July 2026. For audit cases, it is 31 October 2026. Filing by the due date is essential to preserve loss carry-forward rights.
Where do I enter F&O income in ITR-3?
F&O income (non-speculative business) goes into Schedule BP under the "Non-Speculative Business" head. Intraday equity income (speculative) goes into the "Speculative Business" sub-section of the same schedule. These are separate rows with separate P&L figures.
Do I need to maintain books of accounts for F&O trading?
Yes, if your F&O income exceeds โน2.5 lakh or turnover exceeds โน25 lakh, book-keeping is mandatory under Section 44AA. In practice this means keeping contract notes, broker statements, a P&L summary, and records of all trading expenses.