r/CryptoIndia

For those trading BTC/ETH perpetuals or futures in India, how are you actually reporting your profits?

Are you reporting them under the VDA tax rules (30% tax), or as speculative business income under the normal income-tax rules?

I am asking because perpetuals and futures are contracts. There is no actual transfer of the underlying BTC/ETH when you open a position.

For example, if I open a BTCUSDT perpetual long, I am entering into a derivative contract. I am not actually buying BTC, and when I close the position, I am not selling BTC that I previously owned. The transaction is based on the contract's P&L.

So technically, wouldn't this fall under derivatives/speculative business income rather than a VDA transfer?

The taxation is obviously very different between the two, and reporting it as business/speculative income is much more favorable and practical for the trader.

For people who are actually trading crypto perps/futures in India and filing ITRs, what are you reporting them as, and what section/head of income are you using?

Also interested in hearing from anyone who has had a CA specifically deal with crypto perpetuals/futures rather than just spot crypto.

Hey..

Tax time comes and we are stuck with huge unexplained entries. Some use koinx, many just ignore and end up in trouble.

I am working with a bunch of developers and we have come up with a solution which should be able to help.

If you do crypto p2p, currently you either use excel or just don't record transactions.

We believe we have built something that should help you. In tracking transactions, profits and losses, TDS and other requirements.

We invite traders to join our platform as early bets testers for free in exchange for feedback and helping us develop the product.

https://www.blackbirdfinance.net/

Please reach out once you sign up. I will add you to a discord group so we can take this further and gather feedback

Edit: updated the URL