ITR Filing AY 2026-27: 5 Things Intraday and F&O Traders Should Know Before Filing Returns

With the income tax return (ITR) filing process underway for Assessment Year (AY) 2026-27, individuals engaged in intraday and futures & options (F&O) trading should pay close attention to the latest reporting requirements.  

The updated ITR forms require additional disclosures, making it important for traders to choose the correct return form and report their trading income accurately. 

1. Choose the Correct ITR Form 

Selecting the appropriate ITR form is the first step for traders and F&O traders. 

Most traders are required to file ITR-3, as intraday trading income is treated as speculative business income, while F&O trading income is classified as non-speculative business income. 

In comparison, ITR-2 is meant for taxpayers reporting only capital gains from investments, while ITR-1 is applicable only if the prescribed eligibility conditions are met.  

Taxpayers should determine the appropriate return form based on their income profile and seek professional advice if required. 

2. Report the Correct Business Details 

Taxpayers filing ITR-3 must disclose the nature of their business using the prescribed business codes. 

The applicable business codes are: 

The business details reported in the return should match the taxpayer's financial records. 

Read More: ITR Filing Due Dates for AY 2026-27 Revised: Check New Deadline for ITR-3 and Other Tax Returns Here!

3. Disclose Turnover and Trading Income Separately 

The updated ITR-3 requires taxpayers to report turnover and income from intraday trading and F&O transactions separately under the trading account schedule. 

Traders maintaining books of accounts should ensure that the turnover and income reported in the return are consistent with their accounting records to avoid discrepancies. 

4. Know When Books of Account Are Required 

Books of account are generally required if the business turnover exceeds ₹25 lakh or net profit exceeds ₹2.5 lakh in any of the preceding 3 financial years. 

In certain cases, a tax audit may also become applicable depending on the prescribed turnover and cash transaction limits. 

5. Keep the Filing Deadline and Presumptive Taxation Rules in Mind 

For non-audit cases, the due date to file ITR-3 for AY 2026-27 is August 31, 2026. 

Traders should also exercise caution while considering presumptive taxation. Filing ITR-4 solely because presumptive taxation is being considered may not be appropriate for taxpayers with intraday or F&O trading income. Using an incorrect ITR form could lead to compliance-related issues. 

Conclusion 

The updated ITR filing requirements for AY 2026-27 require intraday and F&O traders to provide more detailed disclosures. Choosing the correct ITR form, reporting business income accurately, using the prescribed business codes, and maintaining proper records can help ensure a smoother filing process and minimise compliance-related issues. 

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