F&O Turnover Calculator
Calculate your futures & options trading turnover the correct way (absolute profit + absolute loss) and instantly see whether a tax audit is likely to apply.
Enter as a positive number
How F&O turnover is calculated
For futures and options, "turnover" is not your total contract value. As per ICAI guidance, F&O turnover is the absolute sum of your profits and losses across all trades — that is, you add up the profit on winning trades and the absolute value of losses on losing trades. This figure determines whether a tax audit applies, so getting it right matters.
A tax audit under Section 44AB is required if your turnover exceeds ₹10 crore (the higher limit applies because F&O transactions are almost entirely digital). Below that, an audit is generally not required on turnover grounds — but it can still be triggered if you opt for presumptive taxation and declare profits below the prescribed rate while your income exceeds the basic exemption limit.
F&O income is treated as non-speculative business income and reported in ITR-3. Losses can be carried forward for up to 8 years if you file on time. EvoTax computes your exact turnover from your broker P&L and handles the audit and ITR-3 filing if required.
Frequently Asked Questions
How is F&O turnover calculated?
F&O turnover is the absolute sum of profits and losses on all trades — add the profits from winning trades and the absolute value of losses from losing trades. It is not the total value of contracts traded.
When is a tax audit required for F&O?
A Section 44AB audit is required if F&O turnover exceeds ₹10 crore (since transactions are digital). Below that, an audit is generally not needed unless you declare profits below the presumptive rate under Section 44AD while your income exceeds the basic exemption limit.
Is option premium included in turnover?
Under the current ICAI 2023 guidance, turnover is the absolute sum of profits and losses; the older practice of separately adding option sale premium has largely been dropped. We apply the correct method for your case.
Which ITR form is used for F&O trading?
F&O income is non-speculative business income, reported in ITR-3. It is combined with your salary, capital gains and other income. EvoTax files ITR-3 with the correct turnover and P&L.
Can I carry forward F&O losses?
Yes. F&O business losses can be carried forward for up to 8 years and set off against future business income, but only if you file your return before the due date.
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