Traders need to file their Income Tax Returns (ITR) carefully based on the nature of income. Intraday traders and F&O traders generally file under ITR-3, reporting income as business income. Investors with capital gains can file under ITR-2. Accurate computation of turnover, profit, and allowable expenses is essential. Audit under Section 44AB is mandatory if turnover exceeds ₹10 crore (or ₹1 crore if digital transactions are less than 95%). Taxpayers opting for presumptive taxation under Section 44AD can declare 6–8% of turnover as income to simplify filing. However, this is not allowed for speculative income (like intraday equity). Traders must maintain proper records of all trades, expenses, and bank statements. Losses — business or capital — must be reported if carried forward for future set-offs. Filing within due dates avoids penalties and ensures refund claims are processed. Many traders also use CA services or tax filing platforms to ensure accuracy. Correctly filed ITR provides legal compliance and peace of mind.