Answer

ITR

Salaried employee doing F&O: form and due date

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  1. Facts

    No. F&O is business income, so you need ITR-3, not ITR-1 or ITR-2. From AY 2026-27, the due date for non-audit business is 31 August, not 31 July.

  2. Provisions and law

    • Sec 139(1) (now Sec 263(1))Due date of return
    • Sec 28 (now Sec 26)Business income

  3. Analysis

    Your salary still goes in ITR-3 with the standard deduction. F&O profit is taxed at slab rates with salary. If F&O is a loss of ₹1,20,000, it cannot be set off against salary but can be carried forward if you file by the due date. Many salaried traders wrongly file ITR-2 and get a defective return notice.

  4. Conclusion

    1. Choose ITR-3
    2. Report salary and F&O in the right schedules
    3. File by 31 August (or the audit due date if audit applies)
    4. E-verify within 30 days

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