FnOTax India
AY 2026-27 Scenario guide ITR-3

Option selling income tax.

Option sellers receive large premiums that can make turnover look very different from net profit. AY 2026-27 GN 2025 makes premium treatment the central filing issue.

Check audit All scenarios

Who this is for

Profile

You primarily sell index or stock options, intraday or positional.

Filing position

ITR-3

Report net option-selling result under Schedule BP. Use GN 2025-aware turnover for audit checks.

Step-by-step workflow

Do this
  1. Export option tradebook and broker Tax P&L.
  2. Separate premium received, realised P&L, and charges.
  3. Check whether broker turnover includes option-sale premium.
  4. Deduct eligible expenses in Schedule BP.
  5. Run audit checker on aggregate turnover.

Common mistakes

Avoid

Ignoring premium received

GN 2025 makes option-sale premium a key turnover component unless already netted.

Using margin as turnover

Margin blocked is not turnover.

Forgetting expiry charges and STT

Eligible charges should be captured from ledger and contract notes.

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

Is option selling business income?
Yes, for exchange-traded options it is generally non-speculative business income.
Does premium received count as income?
Taxable income is net business profit after trade results and expenses; premium also matters for turnover computation under GN 2025.
Do option sellers need audit?
Only if the s.44AB decision tree says so after turnover and 44AD checks.