Quick answer
How are share, mutual fund and F&O gains taxed?
Listed shares and equity funds are taxed at 20% if held up to 12 months, and 12.5% on gains above ₹1.25 lakh if held longer. F&O and intraday income is business income taxed at slab rates in ITR-3, and losses carry forward only if you file on time.
Who this is for
- Investors who sold shares, ETFs or mutual funds during the year
- Futures and options (F&O) and intraday traders
- People who sold a house, flat or land
- Employees with ESOPs or foreign shares (these also need foreign asset reporting)
What we do
- Collect your tax P&L from Zerodha, Upstox, Groww or any broker, and capital gains statements from CAMS and KFintech.
- Match them with your AIS, which shows the department's view of your sales.
- Split every gain into short term and long term, and apply grandfathering for shares bought before 1 February 2018.
- Work out F&O and intraday turnover and check whether a tax audit is needed.
- Set off losses where the law allows, and carry the rest forward.
- File ITR-2 (capital gains only) or ITR-3 (F&O, intraday or business income).
How gains are taxed (sales from 23 July 2024)
| What you sold | Short term | Long term |
|---|---|---|
| Listed shares and equity mutual funds | Held up to 12 months: 20% | Held over 12 months: 12.5% on gains above ₹1.25 lakh a year |
| Debt mutual funds bought on or after 1 April 2023 | Taxed at your slab rate, however long you held them | |
| House, flat or land | Held up to 24 months: slab rate | Held over 24 months: 12.5% without indexation. Resident individuals who bought before 23 July 2024 can compare with 20% with indexation and pay the lower amount |
| F&O trading | Business income, taxed at slab rates. File ITR-3 | |
| Intraday equity trading | Speculative business income, taxed at slab rates. File ITR-3 | |
Do not waste your losses
- F&O losses can be carried forward for 8 years and set off against future business income.
- Intraday (speculative) losses can be carried forward for 4 years, only against speculative income.
- Capital losses can be carried forward for 8 years. Long-term losses can only be set off against long-term gains.
Important: losses can be carried forward only if your return is filed by the due date. A late return loses this benefit.
Tax audit for traders
Traders whose turnover is above ₹10 crore (when nearly all transactions are digital) need a tax audit. Some smaller traders also need one in loss or low-profit years, depending on their situation. We check this before filing and arrange the tax audit if needed.
What clients say
Silvia Consulting is doing excellent work in tax filling. Jerome has helped me to file ITR 3 with ease and explained me all the doubts I asked.
I had an excellent experience with Silvia Consulting for filing my tax return. The entire process was completed very quickly, and their team handled everything with great care and professionalism. They explained every step clearly, answered all my questions patiently, and made the entire experience smooth and hassle-free.
Read all 139 reviews on Google
Common questions
Do I need to report an F&O loss if I have no tax to pay?
Yes, if you want to use that loss to reduce tax in future years. The loss is carried forward only when the return is filed on time.
Is switching from one mutual fund to another taxable?
Yes. A switch is treated as selling one fund and buying another, so the gain on the fund you switched out of is taxable.
Which ITR form do I need?
ITR-2 if you only have capital gains along with salary or other income. ITR-3 if you have F&O, intraday or any business income.
My broker statement and AIS do not match. What do I do?
This is common. AIS often shows sale values without costs, or duplicates some entries. We reconcile the two and report the correct figures, and keep a working in case the department asks.
Get a clear quote today
Send us a WhatsApp with a line about your situation. The first consultation is free, and we reply within one working day, usually the same day.