Taxability and TDS treatment on Crypto futures
This query is : Resolved
13 August 2026
Please clarify the Indian income-tax treatment of crypto futures,
including whether profit from such contracts is covered under VDA taxation at 30% under Section 115BBH or should be treated as business income, and whether 1% TDS u/s 194S is applicable ? does the tax/TDS treatment differ when there is no actual delivery or transfer of the underlying VDA?
Also clarify the treatment of losses and their set-off/carry-forward, brokerage and other transaction expenses, and whether any GST, TCS, FEMA/LRS, foreign remittance or other tax/reporting requirements apply ?
when trading through an Indian or foreign exchange. Please confirm the proper tax head, applicable tax rate, TDS provisions, return form and relevant sections/circulars/notifications/judicial precedents applicable to crypto futures trading in India.
including whether profit from such contracts is covered under VDA taxation at 30% under Section 115BBH or should be treated as business income, and whether 1% TDS u/s 194S is applicable ? does the tax/TDS treatment differ when there is no actual delivery or transfer of the underlying VDA?
Also clarify the treatment of losses and their set-off/carry-forward, brokerage and other transaction expenses, and whether any GST, TCS, FEMA/LRS, foreign remittance or other tax/reporting requirements apply ?
when trading through an Indian or foreign exchange. Please confirm the proper tax head, applicable tax rate, TDS provisions, return form and relevant sections/circulars/notifications/judicial precedents applicable to crypto futures trading in India.
13 August 2026
Tax Rate: 30% flat tax (plus 4% cess & applicable surcharge) under Section 115BBH, regardless of whether traded as business income or settled without delivery.
TDS: 1% TDS u/s 194S applies (managed automatically by Indian exchanges; buyer's responsibility on foreign platforms).
Expenses & Losses: Zero deduction for brokerage/expenses, and no set-off/carry-forward of losses allowed.
Compliance: Report under Schedule VDA in ITR; 18% GST applies strictly to exchange platform fee charges.
TDS: 1% TDS u/s 194S applies (managed automatically by Indian exchanges; buyer's responsibility on foreign platforms).
Expenses & Losses: Zero deduction for brokerage/expenses, and no set-off/carry-forward of losses allowed.
Compliance: Report under Schedule VDA in ITR; 18% GST applies strictly to exchange platform fee charges.
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