Tax audits for intraday and F&O speculative income AY 2026-27
Business
Hey traders, ITR season is here!
If you dabble in intra-day or F and O trades (and don't run a registered trading business), your profits or losses count as speculative business income.
There are special tax audit rules you need to know for Assessment Year 2026-27.
Audit required above 1 cr turnover
You'll need a tax audit if your trading turnover tops ₹1 crore, or ₹10 crore if almost all your trades go through banks.
Turnover means adding up all your positive and negative trade differences, as per ICAI.
Also, keep in mind: speculative losses can only offset similar profits and can be carried forward for four years, only if you file your ITR on time.