Does IPTraf includes its own activity in the report? If it does how do I exclude it?
I don't believe that tools such as IPTraf introduce any of their own activity in the way that you think that would warrant it needing to exclude it.
In general most of these types of tools make use of a mode that network devices provide called Promiscuous Mode. This mode allows applications to essentially see every packet as it flows through the NIC so that they can be inspected.
If you look at the Wikipedia page I provided IPTraf is listed as an application that makes use of this feature of the NIC.
excerpt from Wikipedia page
In IEEE 802 networks such as Ethernet, token ring, and IEEE 802.11, and in FDDI, each frame includes a destination Media Access Control address (MAC address). In non-promiscuous mode, when a NIC receives a frame, it normally drops it unless the frame is addressed to that NIC's MAC address or is a broadcast or multicast frame. In promiscuous mode, however, the card allows all frames through, thus allowing the computer to read frames intended for other machines or network devices.