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Know your F&O turnover — and whether a CA audit is mandatory — in one click.
The F&O turnover/tax-audit calculator tells you two things: your F&O (futures and options) trading turnover for income tax purposes, and whether you're required to get a tax audit done under Section 44AB. It's built for retail F&O traders, freelancers and content earners who trade derivatives on the side, and small business owners running a trading account alongside their main business. CAs and tax consultants use it too, for a quick pre-check before advising a client.
F&O turnover isn't the value of the contracts you trade — it's a separate figure used only to test audit applicability. As per the ICAI Guidance Note on Tax Audit under Section 44AB (Revised 2025):
F&O Turnover = Absolute sum of profit on squared-off trades
+ Absolute sum of loss on squared-off trades
+ Premium received on sale of options
(only if not already counted in the profit/loss figure)Audit applicability then depends on this turnover:
| Turnover | Digital transactions ≥95%? | Audit under Sec 44AB |
|---|---|---|
| Up to ₹1 crore | Either way | Not required |
| ₹1 crore – ₹10 crore | Yes | Not required |
| ₹1 crore – ₹10 crore | No | Required |
| Above ₹10 crore | Either way | Required |
"Digital transactions ≥95%" means both your cash receipts and cash payments during the year are each 5% or less of your total receipts/payments respectively — most F&O traders qualify since brokers settle everything through bank accounts.
Rohan trades Nifty and Bank Nifty options through the year.
Turnover = ₹18,00,000 + ₹9,50,000 + ₹0 = ₹27,50,000
Since ₹27,50,000 is well below ₹1 crore, Rohan does not need a tax audit under Section 44AB, regardless of whether he made a net profit or a net loss for the year.
Now take Priya, a full-time trader:
Her turnover crosses ₹1 crore but stays under ₹10 crore, and she's fully digital — so under the enhanced threshold, she does not need an audit either. If even 6% of her payments had been in cash, she would have crossed into mandatory audit territory.
For FY 2025-26 (AY 2026-27), the ₹1 crore / ₹10 crore threshold structure stays unchanged under the ICAI's Revised 2025 (Tenth Edition) Guidance Note. The ₹10 crore enhanced limit needs both cash receipts and cash payments to independently stay within 5% of their respective totals — check them separately, not combined. F&O income itself remains taxed as non-speculative business income under Section 43(5), at your applicable slab rate, and must be reported via ITR-3. If you're unsure whether ITR-3 applies to you versus a simpler form, the <a href="https://toolisky.com/blog/itr-1-vs-itr-4">ITR-1 vs ITR-4 comparison guide</a> explains why F&O traders can't use either of those forms.
No. Contract or notional value is never used. Turnover is only the absolute sum of profit and loss on squared-off positions, plus any option premium not already counted in that profit/loss figure.
Possibly. Audit applicability depends on turnover, not on profit or loss. Even a large net loss can trigger audit if your turnover (profit + loss added together) crosses ₹1 crore and the digital-transaction condition for the enhanced ₹10 crore limit isn't met.
It's possible in some cases, but F&O is typically high-turnover, low-margin business income, so declaring 6-8% of turnover as presumptive profit is often far higher than actual profit. Discuss this with a CA before opting in, since exiting the scheme has a 5-year lock-out.
ITR-3. F&O is non-speculative business income, so ITR-1, ITR-2, and ITR-4 don't apply even if your only other income is salary.
Financial year (1 April to 31 March), same as all other income tax computations, independent of results in earlier years.
No. Turnover here is only profit/loss differences plus option premium. You deduct STT, brokerage, and other transaction costs from your net business income — you don't add them to turnover.
Note: toolisky.com/sitemap.xml and sitemap-blog.xml both returned non-text/binary content that couldn't be parsed for a direct crawl, so the links above were located and verified via direct site search instead. No toolisky.com URL in this document was invented.
Calculations verified by our team including CA Anita Patil. View our full accuracy policy and meet the team →
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