ITR

Tax rate on F&O profits

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Find

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

Sec 28 (now Sec 26); Sec 115BAC (now Sec 202)

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.

Close

  1. Compute net F&O profit after expenses
  2. Add it to other income
  3. Apply slab rates under your regime
  4. Pay advance tax on that basis

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