Search “crypto futures tax India” and you get two confident answers that can’t both be right. Indian derivatives platforms say futures profit is ordinary business income, taxed at your slab rate, with losses allowed to offset. Some chartered accountants say the tax department could still apply the flat 30% crypto rule. The honest answer in October 2026: the exchanges’ view is widely used, but it has never been confirmed by a circular or a court.
What the exchanges say
Delta Exchange India’s help page states that trading futures and options on bitcoin and other cryptos “does not qualify as trading Virtual Digital Assets (VDA); thus 30% VDA tax is not applicable”, and that net profits are taxed at your slab. Its user guide adds the reasoning: balances and profits stay in INR, you never hold the coin, so the 1% TDS and the 30% tax don’t apply, and losses can be set off. It also notes that buying spot crypto on the same platform does attract both.
CoinDCX’s support page is shorter: TDS is not applicable on futures, only on spot and Insta trades.
Why it isn’t settled
The flat crypto tax (Section 115BBH of the 1961 Act, carried into the Income-tax Act, 2025) applies to income from the transfer of a virtual digital asset. A TaxGuru analysis points out that in a cash-settled future, no coin changes hands; the contract is settled by paying the difference. That is the strongest argument that the 30% rule doesn’t bite.
But the same analysis warns it is “unsafe” to assume every cash-settled crypto future is simply a speculative or non-speculative business transaction, because how “commodity” applies to crypto, and which derivatives exceptions apply, are open questions. A Delhi CA firm’s note says the same thing more bluntly: no CBDT circular, no binding clarification and no landmark ruling directly covers INR-settled crypto futures, so the position “remains litigious”.
There is also a side door: if you trade USDT-margined futures, converting INR to USDT and back is itself a VDA transfer, and the gain on that conversion falls under the 30% rule, as the CA note explains.
BtcMedia math: what each view costs
Take one year of trading: winning futures trades total ₹3,00,000 of profit, losing trades total ₹2,00,000 of loss. Net, you made ₹1,00,000.
| VDA view (30% rule) | Business-income view | |
|---|---|---|
| Taxable amount | ₹3,00,000 (losses ignored) | ₹1,00,000 (net) |
| Rate | 30% + 4% cess = 31.2% | Your slab + 4% cess |
| Tax at 30% slab | ₹93,600 | ₹31,200 |
| Tax at 20% slab | ₹93,600 | ₹20,800 |
| Losses carried forward | No | Yes, within the business-loss rules |
The gap is ₹62,400 at the top slab and ₹72,800 at the 20% slab, on a ₹1 lakh net profit. Surcharge is ignored for simplicity. Under the VDA view your effective tax on what you actually made is 93.6%. You can test your own spot numbers in our crypto loss set-off calculator, which shows how the no-set-off rule works on spot crypto.
What it means for Indian investors
- If you file futures profit as business income, you are taking the same position the exchanges describe. Keep the exchange’s contract specifications, your P&L statement and settlement records, so you can show no coin was transferred.
- Business income usually means ITR-3, not the Schedule VDA you use for spot trades. Spot trades, including any USDT conversions, still go in Schedule VDA at 31.2%, with 1% TDS on sales. Our crypto tax calculator covers that side.
- Losses are not automatically safe. Whether they are speculative (which can only offset speculative income) or non-speculative is itself one of the open questions.
- With an active futures book, a CA who handles derivatives is worth paying once; the cost is small next to a ₹60,000+ swing.
BtcMedia verdict: the exchanges’ reading has the text of the law on its side, because the 30% rule taxes a transfer and a cash-settled future transfers no coin. But “no TDS is deducted” is not the same as “the tax office agrees”. Until CBDT speaks, treat the business-income route as a defensible position you may have to defend, not a settled rule.
How we calculated this: illustrative ₹3 lakh gain and ₹2 lakh loss; 4% health and education cess added to each rate; surcharge ignored. Exchange positions as published on their help pages, checked 30 Oct 2026, 2:45 PM IST.
FAQ
Is 1% TDS deducted on crypto futures in India? No, per Delta Exchange India and CoinDCX. TDS applies to spot crypto sales, not to their futures contracts.
Can crypto futures losses be set off in India? Under the business-income view used by exchanges, yes, against eligible business income. Under the 30% VDA rule, no. The question hasn’t been settled by CBDT or a court.
Which ITR form is used for crypto futures? Filers treating futures as business income generally use ITR-3; spot crypto still goes in Schedule VDA.
This is general information, not financial or tax advice. Rules can change; confirm your position with a qualified tax professional.