FnOTax India
AY 2026-27 Scenario guide ITR-3

Delivery equity and F&O in the same year.

Delivery equity and F&O often appear in the same broker report, but they go to different parts of the return. F&O is business income; delivery equity is usually capital gains unless held as stock-in-trade.

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Who this is for

Profile

You sold delivery shares and also traded futures/options in the FY.

Filing position

ITR-3

ITR-3 can report both business income and capital gains. Keep delivery and derivatives separate.

Step-by-step workflow

Do this
  1. Download capital-gains statement and F&O Tax P&L separately.
  2. Classify delivery equity as STCG/LTCG unless held as business stock.
  3. Report F&O in Schedule BP.
  4. Do not net F&O losses directly against salary; capital-gains set-off also has separate restrictions.
  5. Reconcile AIS against broker capital-gains statement.

Common mistakes

Avoid

Using ITR-2 because of capital gains

F&O business income still requires ITR-3.

Netting delivery gains against F&O casually

Set-off rules depend on income head and loss type.

Ignoring AIS mismatch

Capital-gains data may appear in AIS; reconcile before filing.

Useful tools

Next action

Turnover calculator

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Audit checker

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Loss set-off checker

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ITR-3 vs ITR-4 checker

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Frequently asked questions

Can ITR-3 report capital gains?
Yes. ITR-3 supports business income plus capital gains.
Is delivery equity business income?
Usually capital gains for investors, unless maintained as stock-in-trade.
Can F&O loss offset capital gains?
Non-speculative business loss can generally set off against non-salary heads in the same year, subject to rules.