Answer

ITR

Matching F&O figures in AIS with the broker statement

Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.

  1. Facts

    AIS often shows gross sale values or contract values reported by exchanges, which can be far higher than tax turnover. Your return should follow the broker P&L and the ICAI turnover method.

  2. Provisions and law

    • Sec 44AB, Income-tax Act 1961 (now Sec 63, Income-tax Act 2025)Tax audit if business turnover exceeds ₹1 crore (₹10 crore if cash receipts and payments are each within 5%), or professional receipts exceed ₹50 lakh
    • Sec 143(1), Income-tax Act 1961 (now Sec 270(1), Income-tax Act 2025)Return is processed and an intimation shows tax, interest, refund or demand

  3. Analysis

    The department compares your return with AIS, so explain differences. Example: AIS shows ₹3 crore of option sale value while your turnover by the ICAI method is ₹18 lakh. Report correctly in ITR-3 and use the AIS feedback option to note that the figure is contract value. Keep the trade-wise working ready.

  4. Conclusion

    1. Download AIS and the broker tax P&L
    2. Compute turnover by the ICAI method
    3. Give feedback on AIS where figures differ
    4. Report correct figures in ITR-3

A Savvy can do this for you

Business or professional income return, ITR-3 (including F&O and intraday)

₹4,999

Get this doneAsk a Savvy on WhatsApp

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.

People also ask