FnOTax India
AY 2026-27 Scenario guide ITR-3

F&O trading with crypto income.

Indian F&O and crypto/VDA income have very different tax rules. Do not net one against the other just because both happened on trading apps.

Check audit All scenarios

Who this is for

Profile

You traded Indian F&O and also bought/sold crypto or other VDAs.

Filing position

ITR-3

ITR-3 may be needed for F&O business income; VDA schedules and restrictions should be handled separately.

Step-by-step workflow

Do this
  1. Download F&O broker reports.
  2. Download crypto/VDA exchange statements.
  3. Classify F&O as business income.
  4. Compute VDA income under separate rules.
  5. Avoid unsupported cross-set-off between buckets.

Common mistakes

Avoid

Netting crypto loss against F&O profit

VDA loss set-off rules are restrictive. Keep buckets separate.

Using crypto exchange summaries for F&O

Indian broker F&O reports and crypto reports are separate evidence sources.

Ignoring TDS/TCS/AIS data

VDA transactions may appear separately in tax information statements.

Useful tools

Next action

Turnover calculator

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Audit checker

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Loss set-off checker

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ITR-3 vs ITR-4 checker

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Frequently asked questions

Can F&O loss offset crypto income?
Do not assume so. VDA rules are restrictive and should be handled separately.
Does crypto make F&O capital gains?
No. Indian exchange-traded F&O remains business income.
Which ITR form?
F&O generally requires ITR-3; crypto reporting must be added in the appropriate schedules.