Income Tax Calculator FY 2025-26
Complete tax planner for traders, investors & business owners — New Tax Regime, F&O, Intraday, Capital Gains, Salary, Rental & Bank Interest. Auto ITR form suggestion + Section 44AB audit check.
Total Estimated Tax (incl. 4% Cess)
₹0
ITR-1 (Sahaj)
Understanding Tax Rules & Terminology (FY 2025-26)
Speculative Business (Intraday Equity)
According to Section 43(5) of the Income Tax Act, trading in shares without taking actual delivery (Intraday) is considered a Speculative Transaction. Losses from intraday trading can only be set-off against profits from other intraday trading. They cannot be adjusted against F&O or salary income.
Non-Speculative Business (F&O Trading)
Under proviso clause (d) of Section 43(5), trading in derivatives (Futures & Options) on recognized exchanges is explicitly excluded from being treated as speculative. Because it is a normal business, F&O losses can be set-off against your other business profits (like freelance or IT services), helping you save significant tax.
Tax Audit Threshold (Section 44AB)
Section 44AB mandates a tax audit by a Chartered Accountant if your business turnover exceeds certain limits. For completely digital businesses (like stock trading where cash receipts are less than 5%), the audit threshold is extended to ₹10 Crore. Your total trading turnover includes Absolute Intraday Turnover + Absolute F&O Turnover.
Debt Mutual Funds & Bank Interest
As per the Finance Act 2023, investments made in Debt Mutual Funds (with less than 35% domestic equity) after April 1, 2023, no longer offer Long-Term Capital Gains (LTCG) indexation benefits. Both Debt Mutual Fund profits and Bank Interest (Savings/FDs) are added to your overall income and taxed at your applicable Income Tax Slab Rate.
Equity Capital Gains Exemption (Section 112A)
Profits from the sale of equity shares or equity mutual funds held for more than 1 year are classified as Long-Term Capital Gains (LTCG). The government provides an exemption of ₹1,25,000 per financial year. You only pay 12.5% tax on the LTCG amount that exceeds this limit.
Frequently Asked Questions
Is intraday trading speculative income for tax?
Yes. Under Section 43(5), intraday equity trading is treated as Speculative Business. Profits are taxed at slab rate, and losses can only be set-off against other speculative profits — not against F&O, salary, or capital gains. Speculative losses can be carried forward for 4 years.
Is F&O trading taxed as business income?
Yes. F&O on recognized exchanges is treated as Non-Speculative Business. F&O losses can be set off against any other business income (freelance, IT services, intraday profits, etc.) and unutilized losses can be carried forward for 8 years. Filing ITR-3 is mandatory.
When is a Tax Audit (Section 44AB) required for traders?
For digital businesses (cash receipts < 5%) like stock trading, the audit limit is ₹10 crore turnover. Combined absolute Intraday + F&O + Other business turnover above ₹10 crore mandates a CA audit.
What is the LTCG exemption on equity in FY 2025-26?
LTCG on equity shares & equity mutual funds (held over 1 year) is exempt up to ₹1,25,000 per financial year. Any gain above this is taxed at a flat 12.5% under Section 112A.
How are Debt Mutual Funds taxed after April 2023?
Per Finance Act 2023, debt mutual funds (with <35% domestic equity) bought after April 1, 2023 are fully taxed at your income tax slab rate, regardless of holding period. Indexation benefit has been removed.
Which ITR form should F&O traders file?
F&O / Intraday / Business income earners must file ITR-3. Pure salary + capital gains earners file ITR-2. Salaried with no capital gains can file ITR-1. Our calculator above auto-suggests the correct form based on your inputs.
Is this calculator updated for Budget 2025 slabs?
Yes. The calculator uses FY 2025-26 New Tax Regime slabs (0% up to ₹4L, 5% / 10% / 15% / 20% / 25% / 30%) along with Section 87A rebate making income up to ₹12 lakhs effectively tax-free.
Is Standard Deduction available in New Tax Regime?
Yes. Salaried individuals get ₹75,000 Standard Deduction under New Tax Regime (FY 2025-26). It's automatically applied in this calculator when you enter Gross Salary.
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