Which form is the default for F&O traders?

ITR-3. It supports non-speculative business income with full books and is the safe default.

When can a trader use ITR-4?

Only when they elect 44AD presumptive AND meet all eligibility conditions (resident individual/HUF/firm, turnover ≤ ₹3 crore, no foreign income, no commission/brokerage income, no agency business). And they should be willing to accept the 5-year lock-in.

AY 2026-27 Section 44AD 5-year lock-in

ITR-3 or ITR-4? Find the right form in 60 seconds.

With the 44AD lock-in math built in. So you don't pick the form your broker's "easy filing" page tells you to pick.

See the quick rule Read the ITR-3 hub

Quick rule

3 fact patterns

Active trader, no presumptive plan: ITR-3.
Wants to keep books optional, accepts 5-year 44AD lock-in: ITR-4 (only if all eligibility conditions met).
Has any speculative income (intraday equity): ITR-3 (44AD does not work cleanly).

The eligibility conditions for ITR-4 + 44AD

Resident individual / HUF / firm (not LLP). Turnover ≤ ₹3 crore. No foreign income. No commission or brokerage income. No agency business. Plus: profit declared ≥ 6% (digital) or 8% (cash) of turnover.

Before form choice

Calculate turnover first.

Form choice depends on turnover bracket and 44AD eligibility. Use the calculator with the GN 2025 method.

Open calculator

After form choice

Check audit applicability.

ITR form doesn't override 44AB. Even ITR-4 filers can be pulled into audit through the 44AD(4) trap.

Run audit checker

Frequently asked questions

Which form is the default for F&O traders?: ITR-3. It supports non-speculative business income with full books and is the safe default.
When can a trader use ITR-4?: Only when they elect 44AD presumptive AND meet all eligibility conditions (resident individual/HUF/firm, turnover ≤ ₹3 crore, no foreign income, no commission/brokerage income, no agency business). And they should be willing to accept the 5-year lock-in.