FnOTax India
AY 2026-27 Scenario guide ITR-3

F&O trading under the new tax regime.

The tax regime changes slab/deduction outcomes, not the basic classification of F&O. You still report derivatives business income in ITR-3 and compute turnover/audit the same way.

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Who this is for

Profile

You traded F&O and are comparing old vs new regime.

Filing position

ITR-3

Use ITR-3. Regime choice affects tax computation, not whether F&O is business income.

Step-by-step workflow

Do this
  1. Compute F&O business income/loss after expenses.
  2. Compute salary/capital/other income separately.
  3. Compare old vs new regime after eligible deductions and losses.
  4. Check audit and loss carry-forward independently of regime choice.
  5. Preserve broker records either way.

Common mistakes

Avoid

Thinking new regime removes ITR-3

Regime does not change the form needed for business income.

Dropping business expenses

Business expense computation remains relevant.

Ignoring loss rules

Carry-forward and set-off rules remain separate from slab regime comparison.

Useful tools

Next action

Turnover calculator

Open this FnOTax guide or calculator for the next step.

Audit checker

Open this FnOTax guide or calculator for the next step.

Loss set-off checker

Open this FnOTax guide or calculator for the next step.

ITR-3 vs ITR-4 checker

Open this FnOTax guide or calculator for the next step.

Frequently asked questions

Can F&O traders choose new regime?
They may be able to, subject to business-income regime-switching rules and facts.
Are brokerage charges deductible in new regime?
Business expenses directly connected to F&O remain part of business-profit computation.
Does new regime change turnover?
No. Turnover methodology is unchanged.