Suggest proper Tax & TDS applicability on Crypto Futures
This query is : Resolved
Suresh S. Tejwani
(Querist)
13 August 2026
Please clarify the Indian income-tax treatment of crypto futures,
1 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 ?
2 does the tax/TDS treatment differ when there is no actual delivery or transfer of the underlying VDA?
3 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 ?
4 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.
suggest peoper method.
1 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 ?
2 does the tax/TDS treatment differ when there is no actual delivery or transfer of the underlying VDA?
3 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 ?
4 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.
suggest peoper method.
13 August 2026
Tax Rate: 30% flat tax u/s 115BBH (+ cess & surcharge) regardless of delivery or business treatment.
TDS: 1% TDS u/s 194S (handled by Indian exchanges; self-assessment for foreign platforms).
Losses & Deductions: Zero expense deductions (except acquisition cost) and no loss set-off or carry forward permitted.
ITR Reporting: Mandatory reporting under Schedule VDA (and Schedule FA for foreign exchange accounts) in ITR-2/ITR-3.
TDS: 1% TDS u/s 194S (handled by Indian exchanges; self-assessment for foreign platforms).
Losses & Deductions: Zero expense deductions (except acquisition cost) and no loss set-off or carry forward permitted.
ITR Reporting: Mandatory reporting under Schedule VDA (and Schedule FA for foreign exchange accounts) in ITR-2/ITR-3.
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