ITR filing: Why salaried individuals should not indulge in F&O trading

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₹12 lakh salary and incurred a ₹14 lakh loss in F&O trading. "Filed a salaried ITR with 12 lakhs salary and 14 lakhs loss in F&O. Hope people realise that F&O trading and doing job simultaneously is not everyone's cup of tea," tweeted CA Nilisha Mantri about one of her clients.

CA Nilisha Mantri's cautionary tale emphasizes that engaging in F&O trading while holding a job requires careful consideration and sufficient capital. "99% of Salaried Income Tax filers who are also dealing in F&O derivative & shares trading have reported and made losses! Salaried make losses in F&O, invest so much time and effort in trading and at the same time may not be able to give 100% to their Job. Salaried should invest time in developing their core skills to increase their primary salary income and target passive secondary steady income from rent, MF, etc in the long run," tweeted CA Chirag Chauhan.

The experiences shared by professionals like CA Chirag Chauhan and the analysis conducted by Sebi further highlight the challenges faced by individual traders. “It is evident that a substantial number of traders have encountered losses in the equity derivatives segment," said Amit Gupta, MD, SAG Infotech. As we navigate the world of financial markets, it is essential to approach F&O trading responsibly and make informed decisions.

Building our core skills to increase primary salary income remains a prudent strategy. While investing can be rewarding, it is crucial to be well-prepared and cautious before venturing into the volatile F&O trading realm. Let us encourage each other to seek expert advice, assess risk tolerance, and prioritize the stability of our financial futures, added Amit Gupta.