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Under the Income Tax Act, income from Futures and Options (F&O) trading is treated as business income.
How Is Crypto Futures Trading Taxed in India?
| Details | What You Should Know |
|---|---|
| Tax Classification | Income from Futures and Options trading is treated as business income under the Income Tax Act. |
| 1% TDS Applicability | WazirX Futures trades are settled in INR and classified differently from direct Virtual Digital Asset (VDA) transfers. Therefore, the 1% TDS applicable to VDA transfers does not apply to each Futures transaction. |
Important: Tax treatment may vary based on individual circumstances and applicable regulations. Consult a qualified tax professional for guidance on tax reporting and compliance requirements.