Crypto Tax in India Explained (2026) | Spot, Futures & Derivatives | Is There No Tax Below ₹12 Lakh?

[00:01] welcome to all of you in a new and a banging video. Friends, many of you trade crypto these days. They either spot trade crypto. But as far as I know, majority of the people do crypto

[00:14] derivatives. So trading has become a different topic that brother is trading , finding a strategy, making money , losing money. But at the end of the day, when you trade crypto legally in India, you have to

[00:29] pay tax to the government on the money you earn. If you earn money, you have to pay tax. If you have lost money, you have to inform the government about that too. This means you have to file ITR. Ok? So in this video I am going to tell you how crypto taxation

[00:42] is in India. Exactly, if you make money, then how much money do you make and how much tax will you have to pay. If you lose money, how can you set it off and include it in the profit you make next year.

[00:58] So without wasting any time let's start today's amazing video. video. [Music]

[01:14] Ok? First are the people who spot crypto. The second are people who do crypto derivatives. Here, 80% of the people who are watching my videos , I know they do crypto derivatives. But I am going to explain the tax rules for both the

[01:27] spot ones or derivative ones. So first of all we will start with it will clear up. Then we will move ahead on derivatives. Now if we look here, same market very different rule. Ok? The market is the same. Crypto

[01:42] rule. Ok? The market is the same. Crypto is the same. But the rules are very different. Ok? As you watch the video further, you will understand why the rule is different. Why do you have to pay 30% tax at one place? At one place you have to pay zero tax.

[01:54] This is one of the many things I will cover in this video. Ok? So if you trade spot. Ok? Spot trades and crypto derivatives can fall under completely different tax treatment in India using the wrong assumption can mean

[02:06] overpaying. Even if you make wrong assumption, you will have to pay over tax. But the rules for spot and derivatives are completely different. Now here if we look at spot crypto. Ok? So this usefully comes under section 115 BBH.

[02:20] Meaning you have to pay 30% flat tax. No loss set off, no carry forward. Meaning if you trade spot. Ok? So you will have to pay flat 30% tax and here you cannot set off the loss nor can you carry it forward.

[02:35] India says that transfer of titles is okay if you you buy it from someone else, that means what is happening here is that the ownership is coming to you from someone else. So if it falls in that segment then you will have to pay 30% flat tax here. This is the

[02:51] first thing that happened. Now the second thing here is that you can suppose you bought it for ₹100 [Music] So you don't have to pay TDS when you buy it. You have to pay TDS when you sell, that is, if you bought it for Rs 100 and sold it for Rs 110, then you will have to

[03:07] pay 1% TDS on the sale value. Ok ? This means that we will have to pay 1% TDS on ₹110, which will be set off in your ITR when you file it. Ok? And the third thing here is that if you do spot trade, then like we used to

[03:22] trade in the Indian market, if we made a loss of ₹5 lakh this year, then if we made a profit of ₹5 lakh next year, then we would set off that. Meaning, even if we make a profit next year on the loss we incurred [music], we wo

[03:35] n't have to pay any tax. But this is not the case in spots. You will have to pay tax on the spot. So remember these three things on the spot. Flat 30%: If you bought it for ₹1 lakh and sold it for ₹1,300, then you will have to pay

[03:52] sale value. And the third thing I told you is that brother, no one can set it off. Crypto derivatives classification may depend on slab rate business and speculative income. Now if you get into crypto derivatives [music], it depends on

[04:06] whether your business has a slab rate. Because crypto derivatives are treated as business income. So whatever your slab rate is, whatever amount you earn comes under the normal tax slab of the government. Ok?

[04:18] Depending upon what the model is, what the thing is, it all depends on that. Ok? Loss Route Spot Losses Cannot Be Carried Forward. I told you that derivative losses may be depending on the treatment. This means that the derivative losses that you

[04:31] incur by trading in derivatives can be set off or carried forward. I told all the points. You can read it again and again. Ok? All the ? [Music] The spot guy's statement was simple: Bhaiya, you buy it for ₹1 lakh and

[04:47] sell it for ₹1400. There will be a profit of Rs 400. On Rs 400 you will have to pay 30% tax plus. Rest of the TDS will remain applicable. This is for spot people, this is not for crypto people. Ok? Now if we move forward. So let us understand the framework once.

[04:59] Understand the tax framework. Spot vs Crypto Pay. If we look at the tax framework here, Section 155 comes under BBH. Ok? And if we look at crypto derivatives, here interpretation based varies by

[05:11] contract, meaning it is the same simple business model is different. This income of yours is If I teach you one more thing, one point here. Ok? So there is a 30% flat special rate for Fort. Whereas if you are doing business income in crypto, then there may be slab rate, if it is business

[05:27] income, okay [music] if it is considered business income, then whatever your tax slab rate is, okay, you don't have to pay anything up to ₹1 lakh, now we will talk about how, in what way, exactly, okay, TDS has to be paid here at 1%, okay, under section 194s,

[05:42] but you don't have to pay any TDS here, if you do derivatives, then you do n't have to pay any TDS, okay, I have already told you that set off is not allowed in the law, it is possible depending on the way the classification is, in that way

[05:56] Carry forward not allowed in video losses. If you incur a loss in virtual additional asset, you cannot carry it forward. Ware s four to eight years depending on the In this you can carry forward and also set off.

[06:10] Ok? By now you have understood this fault very well. Now let me explain derivatives to you. Interpretation Area. Ok? Certain crypto futures and options specially IAR settled contracts may be treated differently from [music] spot VDA

[06:24] transfers. Ok? Because here no ownership is being transferred in derivatives. In derivatives, you are simply trading a contract. So it will not come under VDA. Ok? Many practitioners and

[06:38] exchanges classify them as a business of speculative income potentially attracting clab [music] rate taxation. Ok? This is a very acute point. All those who are watching this through practitioners and exchanges classify them as a business and speculative income

[06:52] potentially attracting slab taxation. This means that means that futures income will be considered in the tax slabs set by the Government of India. This is not a universal rule. Ok? Why? Because

[07:05] just the rule that exists does not mean that it is a made-up rule. The government told us to do this. No, there is nothing like that. This is just a universal rule that we think about and the way we file our taxes. Ok? The Government of India has

[07:18] Because it is being treated as business income. This is speculation. Therefore, this rule is applicable here. Contract type, settlement mechanism and exchange structure all matters always consult a qualified CA whatever that means

[07:31] I am making this video. Basically this is my opinion which I am which I am Before paying tax, you must consult your CA once as to how you have to pay

[07:44] ? Whatever the matter is, consult your CA and only then you can move ahead. Now friends, let us come to the main scenario. Ok? Whether you have to pay tax on derivatives. Let's suppose you traded this year.

[07:58] You traded in the last financial year and you have to file taxes this year. Ok? So if you have made a profit of ₹1 lakh, do you have to pay tax? Do you have to pay tax if you have made a profit of ₹ lakh ? As far as I know so far.

[08:12] If you have earned up to ₹1 lakh in India, then that income is tax free for you. Ok? [Music] Now what about crypto here? This is the rule of India, isn't it? So the same rule will crypto derivatives again I said [music] is a speculation that will be treated as

[08:29] business income. So if you have earned ₹1 lakh then you do not have to pay tax. If you earn ₹5 lakh then you do not have to pay tax. If you earn ₹1 lakh you do not have to pay tax. But if you have earned ₹15 lakh then you have to pay tax [music]. If you come under 15% then it will be

[08:43] 15%, if you come under 20% then it will be 20%, if you come under 30% then it will be 30%, whichever tax lab you come to, you will have to pay tax accordingly. But if you have earned up to ₹12 lakh from crypto this year, then according to me you do

[08:57] not have to pay tax. But not paying tax means not filing ITR. Because whatever you trade, the entire exchange data goes to the Government of India and Income Tax. All your data is linked to the exchange because your PAN is linked to it.

[09:10] So all the data is going to go to the Government of India and the tax department. So those people themselves will think that you are trading transactions so heavily because you trade on leverage, so your volume already becomes very big.

[09:22] Some people might have done trades worth Rs 100-100 crores. Some people might have done a trade worth Rs 500 crore. you are using leverage of 100% then the already invested ₹1 lakh becomes 100 times more. Ok? So a very heavy transaction will take place.

[09:36] Ok? Whether you have made a profit or you have made a loss. You will have to file ITR here. Income tax report where you will mention that yes I traded in speculation. I made this money by trading in speculation. Ok? Ok? Like 10 20 500 you have traded in a year. Even

[09:50] then you should file ITR. Ok? Because filing your ITR will cost you ₹2,000 to ₹1,000. It won't cost more than that. India that yes I was trading in speculation. This is profit, this is loss.

[10:06] This is the rule that income tax on ₹1 lakh is zero. Ok ? The reality is that the lakh rebate specially excluded special rate income such as VDA gains. I have already told you this. Not applicable for spots. But in derivatives it is

[10:21] treated as business income. So it may be eligible for slab rate rebate but ITR filing is still mandatory. I just told you that it will qualify but filing ITR is still mandatory. The ₹12 lakh rebate under the new tax regime excludes

[10:36] special rate income such as capital gains under Vidyat transferors. I have already told you this. You will have to pay tax on the spot. But you will get business income in derivatives. Ok? You must have understood this thing clearly. What are the rules and regulations? Let us

[10:49] contract made a profit of ₹2 lakh. Ok ? You incurred a loss of ₹80,000. How much was your net taxable income? ₹1,20,000. Tax depends upon the classification slab rate. Ok? Whatever your slab rate is, you will have to

[11:02] pay tax accordingly. Scenario B. Ok? Speculative loss not fully adjusted this Speculative loss not fully adjusted this year. Ok? Now let's turn to the main question: what if you traded this year and made a loss of ₹5 lakh. Ok?

[11:17] Look here, speculative income if you do it, okay [music] so if your business category is the same. Ok? If it is the same business category then you can carry it forward for eight years in the same field. Understand the matter. Ok? You can carry forward up to eight years in the same field.

[11:31] But if you are doing speculative trading here, then definitely if you are investing ₹1 lakh, then you must have earned ₹1 lakh from somewhere. You must have earned from some X or Z business, that is why you are

[11:43] investing it here. So the categories of both businesses became different. So if the same business category remains. Let's assume you have a transportation business. You made a loss this year. Ok? So here, if you incurred a loss of ₹1 lakh, you

[11:55] could carry it forward for 8 years. But here you earned from transportation business here you made loss. So you can carry forward that loss for the next 4 years. Meaning, if I have lost ₹5 lakh this year and am not able to set it off this year, then

[12:10] next year. This means we can carry it forward for the next four years. So if you have made a loss, file your ITR and show it to him [music] so that next year if you make ₹5 lakh again,

[12:24] you don't have to pay any tax next year. Obviously, no tax will have to be paid on ₹5 lakh. truth because you must have made money from some other business. Let's suppose you made ₹1 lakh from some business. You lost ₹5 lakhs here. So

[12:36] ultimately you should make only ₹1 lakh. Ok? So now if you do not show this thing taxed. So in this way you will come into the safe zone. So in this way you will come into the safe zone. So, as far as

[12:50] I have read and heard about all these things related to taxation, I know all these things. Ok? This will happen whenever you go to file your ITR in 2026 , right? Here, if I first not that you should rely on exactly what I have told you. Be

[13:07] There is also a fine of Rs 200 per day. Ok? 500 if there is a penalty here. If you incur and file things then this is the rule of income tax. Ok? Keep your records. Statement with exchange which is Trade Ledger, PNL Summary.

[13:20] You all should create a PDF folder and keep all these records at one place and keep a summary of all the trades you did in this financial year. Ok ? And along with that, keep a PDF summary of the TDS details and bank trail, whatever you deposited the money , whatever withdrawals you made, whatever TDS you received.

[13:34] , whatever withdrawals you made, whatever TDS you received. derivative clearly. Ok? Both spot and derivatives have different tax rules. It is different. Ok? Match TDS credit before filing. If you

[13:47] and do all the other things because spot ticket TDS will come separately. There is no TDS here. Ok? So explain all the things to your CA or you can also show him some of my videos if obviously you need to understand something. Ok?

[14:01] File on time. Ok? You should file it timely. Ok? If claiming loss carry forward or whatever profit is yours. Consult a CA if unsure on classification. If you are not sure about my classification then please consult your CA

[14:15] disclaimer. This video is for educational purpose. I'll use whatever sources I can find. Ok? I have taken all these sources in references. Let me show you once. How do you set off the loss from income tax and then TDS on VDA

[14:28] ? Carry forward is from the Income Tax website. The budget ? Taxation on crypto futures. Ok ? 30% Tax is a 30% video tax applicable on trading profits. I have taken the source of Delta Exchange. Is loss

[14:43] options. These are also all the references and sources from Delta from where I have picked up all the things. Ok? Guys, please consult your CS once. This was my knowledge. This is how I file. You can consult your CA and

[14:55] file accordingly. And I hope you have learned something from this video. If you liked this video then please like this video. If you can do so by visiting Delta Exchange India. And if you open an account through my link, then

[15:08] sharing trades etc. related to the crypto market. You will link in the description. Go through my link and open an account. If you like this video then please And I meet you in some such valuable content. Until then, this

[15:21] in some such valuable content. Until then, this is Desh Rai [music] signing off.