Answer

1. F

   Facts

   F&O trading is business income, so an NRI needs ITR-3. If turnover crosses audit limits, a tax audit and earlier due date apply.

2. P

   Provisions and law

   • e-Filing portal, returns applicable to non-resident individualsNon-residents file ITR-2, or ITR-3 if they have business or professional income.
   • Sec 44AB, Income-tax Act 1961 (now Sec 63, Income-tax Act 2025)Tax audit thresholds for business.
3. A

   Analysis

   Compute turnover as per the rules for F&O. If audit is not required, ITR-3 is due 31 August 2026 for AY 2026-27. Report profit or loss in the business schedule. Losses can be carried forward only if the return is filed on time.

4. C

   Conclusion

   1. 1Compute F&O turnover and profit.
   2. 2Check audit applicability.
   3. 3File ITR-3 by the right date.
   4. 4Carry forward losses if filed on time.

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