Taxation of crypto futures in India Fy 2026- 2027

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karthikeyan (Querist)

14 October 2026 **Query: Taxation of Crypto Futures in India (FY 2026–27)**

I am an Indian resident planning to trade BTC/ETH perpetual futures on:

1. **Binance Global:** USDT-settled futures.
2. **Delta Exchange India:** INR-settled futures.

My main question is whether I can pay income tax on **net annual trading profit after adjusting eligible losses, trading fees and funding charges**, instead of paying 30% tax under the VDA regime.

Please clarify:

1. Are cash-settled crypto futures taxable as business/speculative income or under the 30% VDA tax regime?
2. Can winning and losing futures trades be netted for tax purposes?
3. Does receiving profits in USDT make the futures profit taxable under VDA rules? Is converting USDT into INR a separate taxable event?
4. Is Delta Exchange's INR settlement treated differently from Binance's USDT settlement?
5. What is the legally correct tax treatment, with relevant sections or circulars, for FY 2026–27?

I would appreciate a concise answer from a CA familiar with crypto derivatives. Thank you.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

14 October 2026 Crypto futures trading on both Binance and Delta Exchange is taxed at a flat 30% under Section 115BBH without any set-off of losses or deduction for trading/funding fees. Each profitable trade is taxed individually, and converting USDT to INR constitutes a separate taxable VDA transfer.

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