How is F&O trading turnover calculated for tax audits?

F&O trading turnover is calculated by summing up the absolute values of profits and losses (i.e. ignoring positive/negative signs) across all trades. Premium received on options sale is also added.

When is a tax audit mandatory for F&O traders?

A tax audit is mandatory if F&O turnover exceeds ₹2 crore (as almost all trades are digital). If declaring profits below 6% under presumptive scheme, audit is required if total income exceeds basic exemption.

F&O Business Tax CheckerFY 2026-27

Calculate trading turnover using the absolute P&L method and check Section 44AB/44AD audit triggers for derivative traders.

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Quick Summary: F&O Business Tax Checker

F&O trading is treated as a non-speculative business income in India for FY 2026-27. Tax audit triggers are based on 'Tax Turnover' (Sum of absolute profits and losses). An audit is mandatory if turnover exceeds ₹2 Crore, or if you declare less than 6% profit and your total income exceeds the basic exemption limit.

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Regulatory Disclaimer · FY 2026-27

Last verified May 2026

Statutory Disclosure

Nature:Calculator platform and is NOT a SEBI-registered Investment Adviser. All calculations are indicative.

Risk:"Investments in securities market are subject to market risks. Read all related documents carefully before investing."

Consult a SEBI-registered IA or CA for personalised advice.

9 out of 10 traders in F&O incurred net losses (SEBI 2023). Tax estimates based on IT Act 2025. Trezoriq is not liable for financial decisions based on results.