ITR
Tax rate on F&O profits
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Facts
F&O profit is business income taxed at your normal slab rates, not the special rates for capital gains. Net profit after expenses is added to your other income.
Provisions and law
- Sec 28 (now Sec 26)Business income
- Sec 115BAC (now Sec 202)New regime slab rates by default
Analysis
If salary is ₹12,00,000 and F&O net profit ₹6,00,000, total income is ₹18,00,000 and the F&O part falls in higher slabs. The 15% and 20% rates people mention apply to short-term capital gains on delivery equity, not F&O. Plan advance tax on that basis.
Conclusion
- Compute net F&O profit after expenses
- Add it to other income
- Apply slab rates under your regime
- Pay advance tax on that basis
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