Free guide · no login · checked 4 Nov 2026
Futures and options trading (high risk)
Read this first: SEBI found 9 in 10 individual F&O traders lost money.
Money to start
Up to ₹5 lakh
Time it needs
10 to 25 hours a week
Risk
High
Works from home
Yes
Explore
What it is, who it suits, what it can pay, how soon, the upside and the risks.
F&O are contracts that let you bet on price moves with borrowed exposure. Small moves can wipe out your money. It is a legal activity, but for most people it is a way to lose money, not earn it.
Who it suits
- Only people who can lose the full amount without harm
- Those with deep market knowledge and strict risk rules
- Not for students, borrowers or anyone replacing a salary
Upside
- Hedging tools for experienced investors
Risks to know
- Large and fast losses
- Paid tip groups and 'guaranteed return' courses are scams
- Never trade with borrowed money
What it can pay
SEBI found that 91% of individual traders in equity F&O made a net loss in FY 2024-25. In intraday cash trading, over 70% lost money in FY 2022-23.
What drives it: Mostly skill, discipline, costs and luck. Brokerage, taxes and slippage work against you on every trade.
Source: SEBI study: 91% of individual traders lost money in equity F&O in FY 2024-25 (Business Standard report)Time to first income
Instant, in either direction.
Assess
Skills, money, tools, hours and registrations you need, and a five question fit check.
Skills
- Deep market knowledge
- Strict stop-loss discipline
Money to start
Only money you can afford to lose completely.
Tools
- Trading account with F&O activation and income proof
Time per week
Market hours.
Licences and registrations
Tick each one as you get it. Your ticks stay on this device.
Quick fit check
- 1.Could you lose this money without any harm to your family?
- 2.Have you studied SEBI's study on trader losses?
- 3.Do you have a written stop-loss rule?
- 4.Are you trading with no borrowed money?
- 5.Do you have a separate steady income?
Answer all five to see how well this fits you.
Run
Your first 30 days to the first rupee: set up, price, get paid, find customers, keep records.
Days 1 to 7
Set up
Days 8 to 10
Price it and get ready to be paid
Days 11 to 24
Find your first customers
Days 25 to 30
Record and review
Nurture
Grow and stay compliant: tax, GST, government schemes and the help that fits.
Grow it
- If you lose money for three months running, stop
- Move to long-term investing instead
- Get a tax audit check from your broker statement
Tax: Futures and options
Return: ITR-3
- F&O profit or loss is non-speculative business income. Intraday equity trading is speculative business income, taxed in a separate bucket.
- Losses carry forward for eight years only if you file by the due date.
- A tax audit can apply under Sec 63 of the Income-tax Act 2025 (old Sec 44AB) depending on turnover and profit. Turnover for F&O is worked out in a special way. A Savvy checks it from your broker statement.
No GST
Interest, dividends and share trading are not supplies. No GST registration needed for this income.
Make it official
Only what this way of earning needs. Free tools are marked; services are done by a TaxSavvy CA.
Questions
How much can I earn from futures and options trading (high risk) in India?
SEBI found that 91% of individual traders in equity F&O made a net loss in FY 2024-25. In intraday cash trading, over 70% lost money in FY 2022-23. What drives it: Mostly skill, discipline, costs and luck. Brokerage, taxes and slippage work against you on every trade.
How long until the first income?
Instant, in either direction.
What do I need to start?
Only money you can afford to lose completely. Registrations: PAN, F&O activation with your broker (needs income proof).
Which ITR form do I file for this income?
ITR-3. F&O profit or loss is non-speculative business income. Intraday equity trading is speculative business income, taxed in a separate bucket.
Do I need GST?
Interest, dividends and share trading are not supplies. No GST registration needed for this income.
Sources
Read on 4 Nov 2026. Limits, rates and fees change: check the official site before you rely on them.
- SEBI study: 91% of individual traders lost money in equity F&O in FY 2024-25 (Business Standard report)
- SEBI study: over 70% of individual intraday traders lost money in FY 2022-23 (Business Standard report)
- SEBI investor website
- Income Tax Department: Income-tax Act 2025 FAQs
This guide is general information from TaxSavvy, not a promise of income. No legal way to earn is guaranteed or instant. Avoid any offer that asks you to pay to join, recruit others or bet.
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