But if you also played the derivative market and made money (or incurred losses) in futures and options, get ready to use the more complicated ITR 3. Tax rules treat gains from F&O trading as business income and not capital gains. Even if you are a salaried person or the F&O trading is not your primary business, you have to use ITR 3 to file your return. Ashish purchased one lot of X futures for Rs 10 lakh and sold them for Rs 10.5 lakh. He bought one lot of Y options for Rs 15 lakh and sold them for Rs 14.9 lakh.

Source: Economic Times July 22, 2019 01:02 UTC