All you need to know about reporting gains and losses from F&O in your ITR

The nature of the income arising out of trading in F&O will depend on the volume and frequency of trade and the motive of such transaction

Lately, many have resorted to Derivative Trading i.e. trading in futures and options, which has become immensely popular among not only those who have taken up such activity full time but also the salaried lot who consider this as a means of earning a quick additional income. However, many of them are unaware of the tax implications of such trade and also the reporting requirements in the income tax return. Let us read on to understand these.

Trading in Futures and Options - tax implications

First, one needs to understand that everyone dealing in derivatives must report loss or gains