# Tax for Traders & Investors — F&O, Shares, Crypto, US Stocks

> Income from the stock market is taxed under different heads depending on what you trade: futures and options are non-speculative business income, intraday equity trades are speculative business income, delivery-based shares and equity mutual funds give capital gains at 20% (short-term) or 12.5% above ₹1.25 lakh (long-term), and crypto and other virtual digital assets are taxed at a flat 30% with no set-off of losses.

## Who this is for

- F&O and intraday traders filing ITR-3
- Long-term investors in shares, mutual funds, bonds and REITs
- Crypto and other VDA investors and traders
- Residents holding US stocks, ETFs or employer shares abroad

## Services

- [F&O Trading Tax & ITR-3 Filing](https://www.industax.com/services/investor-tax/fo-trading-tax) — Futures and options income as non-speculative business income
- [Intraday Trading Tax](https://www.industax.com/services/investor-tax/intraday-trading-tax) — Speculative business income from same-day equity trades
- [Tax Audit for Traders](https://www.industax.com/services/investor-tax/trader-tax-audit) — Section 44AB audit for F&O and intraday traders
- [Capital & Trading Loss Set-Off and Carry Forward](https://www.industax.com/services/investor-tax/trading-loss-set-off) — Using capital, F&O and speculative losses to cut future tax
- [Mutual Fund Tax Filing](https://www.industax.com/services/investor-tax/mutual-fund-tax) — Equity, debt, hybrid, gold and international funds
- [Tax on US Stocks & Foreign Shares](https://www.industax.com/services/investor-tax/us-stocks-foreign-shares-tax) — Indian residents investing abroad through LRS or holding employer stock
- [Crypto & VDA Tax Filing](https://www.industax.com/services/investor-tax/crypto-vda-tax-filing) — Schedule VDA, 30% tax and 1% TDS reconciliation
- [Tax on Bonds, SGBs, REITs & InvITs](https://www.industax.com/services/investor-tax/bonds-sgb-tax) — Interest, distributions and capital gains on fixed-income and trust units

## FAQs

### Which ITR form should an F&O trader file?

ITR-3, because F&O is treated as business income. ITR-2 is for capital gains without business income. Using ITR-2 for F&O trades usually leads to a defective-return notice under Section 139(9).

### Is tax audit compulsory for F&O traders with a loss?

Not automatically. A tax audit is required if F&O turnover exceeds ₹10 crore (when cash transactions are within 5%) or ₹1 crore otherwise, or if you declare profit below 6% of turnover under presumptive taxation while your total income exceeds the basic exemption limit. Many loss-making traders with low turnover don't need an audit.

### Can crypto losses be set off against other income?

No. Income from transferring virtual digital assets is taxed at 30% under Section 115BBH, only the cost of acquisition is deductible, and a loss on one crypto asset can't be set off against gains on another or carried forward.

---
Canonical page: https://www.industax.com/services/investor-tax/
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.