The revised ITR-3 form, notified by the Central Board of Direct Taxes (CBDT) on March 30, 2026, introduces mandatory reporting of separate F&O trading data for the Assessment Year 2026-27. According to reports from NDTV Profit, the form now includes new columns under "Schedule Part A – Trading Account" that require taxpayers to report turnover from F&O trading and income from F&O trading credited to the profit and loss account. This represents a significant shift from the previous practice where F&O trading results were coupled with broader business receipts. Intraday traders are also covered under the same schedule, with the revised form now placing both intraday and F&O disclosures together. As highlighted by TaxBuddy's Sujit Bangar, taxpayers should not ignore these new fields, warning that "ITR-3 has NEW disclosure columns this year for you. Leave them blank and your return can be flagged as defective." The revised ITR-3 form also requires more granular reporting of different categories of trading activity, including intraday transactions and other business-related details, with traders advised to ensure figures reported are consistent with broker statements and books of accounts.
The revised form introduces additional disclosure requirements that extend beyond traditional trading data. As reported by NDTV Profit, taxpayers must now provide details about residential status, filing status, and address information. Non-residents specifically need to disclose foreign tax identification numbers and details about their stay in India. The threshold for reporting assets and liabilities has been increased from ₹50 lakh to ₹1 crore. Additionally, the form includes reporting requirements for high-value transactions where taxpayers with income below the taxable limit may need to provide details if they spent over ₹2 lakh on foreign travel, deposited over ₹1 crore in bank accounts, or incurred electricity expenses exceeding ₹1 lakh. According to TaxBuddy, the tax department's objective is to "create a clearer audit trail for derivative transactions" amid growing participation in the F&O segment and concerns over investor losses.
According to NDTV Profit, missing out on adding information can lead to serious consequences for F&O traders. If deficiencies are not rectified within a particular timeframe, the return may be treated as invalid, which can potentially affect tax compliance and other benefits available to taxpayers. For salaried taxpayers without audit requirements, the deadline for filing ITR-3 is July 31, 2026, while taxpayers whose accounts are subject to audit need to submit their return by October 31, 2026. As noted by TaxBuddy, missing the deadline may not only attract penalties but also result in the loss of the ability to carry forward business losses for up to eight assessment years. For F&O traders, experts say accurate and timely filing will be critical this year. The Income Tax Department has established different deadlines for different taxpayer categories, with belated returns allowed but may attract interest and penalties.
As reported by NDTV Profit, income or loss from F&O is seen as a non-speculative business income by the Income Tax Department. Taxpayers must declare such income or loss under the head Profits and Gains of Business or Profession (PGBP). Gains from F&O are taxed at individual slab rates, making it crucial for traders to accurately report their trading activities in the revised ITR-3 form to ensure proper tax calculation and compliance. Since F&O income is generally classified as non-speculative business income, most traders are required to file ITR-3. Data released by market regulator Sebi has shown that nine out of 10 individual F&O traders lose money, highlighting the importance of proper disclosure and compliance.
