FnOTax India
AY 2026-27 Scenario guide ITR-3

F&O trading while employed.

Employees often assume employer TDS has handled their tax year. It only handles salary estimates; F&O business income/loss must be added separately in ITR-3.

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Who this is for

Profile

You have a job and traded F&O on the side.

Filing position

ITR-3

ITR-3 combines salary and business-income schedules. Employer TDS does not classify or report your F&O trades.

Step-by-step workflow

Do this
  1. Collect Form 16 and AIS.
  2. Download F&O broker reports.
  3. Compute F&O profit/loss, expenses, and turnover.
  4. Check audit and loss set-off.
  5. Pay remaining tax/self-assessment if salary TDS is insufficient.

Common mistakes

Avoid

Assuming employer TDS is enough

F&O profits can create additional tax beyond salary TDS.

Not reporting because employer does not know

Tax reporting is by PAN/AIS/broker records, not employer awareness.

Trying to offset salary with F&O loss

Business loss cannot offset salary.

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

Do I need to tell my employer about F&O?
Tax filing is separate from employment disclosure. Check employment policy, but ITR reporting remains your responsibility.
Can salary TDS cover F&O tax?
It may or may not. Compute total tax after adding F&O business income.
Which ITR form?
ITR-3 is generally required.