Law checked 21 August 2026

Published 8 August 2026

4 min read

Written and maintained by the CryptoKar team

Glossary

Schedule BP and Crypto Business Income

Schedule BP carries income from business or profession. Two kinds of crypto income commonly land there: results from futures and options, and fees you earned in tokens for work you did.

Key highlights

Where the slab rate applies instead of the flat 30%.

Slab

Rate on business income, with expenses allowed

Ordinary provisions

ITR-3

The form that carries Schedule BP

Business or profession

Open

Whether a crypto derivative is itself a VDA

Section 2(47A)

Futures and Options

Whether a crypto future or option is itself a virtual digital asset under Section 2(47A) has not been clarified, and that gap is what leaves the TDS position and the schedule open. The common reading treats the result as business income at your slab rate, reported in Schedule BP rather than Schedule VDA.

The funding leg is taxed separately. Money put in to open a position is usually converted into a stablecoin first, and that conversion is its own transfer under Section 115BBH when the stablecoin is later disposed of.

Fees Earned in Crypto

Consulting, development or advisory work settled in tokens is business or professional income at the rupee value on the day of receipt, and the ordinary rules apply, including deduction of the expenses of earning it. That is a materially better position than a VDA gain, where only the cost of acquisition comes off.

The tokens then hold a basis equal to that value, and selling them is an ordinary transfer at 30% with 4% cess. GST on the service you supplied is a separate question that turns on your registration.

Frequently Asked Questions

The questions this term raises most often.

The common reading treats the result as business income at your slab rate, reported in Schedule BP of ITR-3. Whether a crypto derivative is itself a VDA under Section 2(47A) has not been clarified, which is what leaves the TDS position open.

Against business income, yes, under the ordinary provisions. Against a VDA gain under Section 115BBH, no: cost of acquisition is the only deduction allowed.

ITR-3, because it carries Schedule BP. ITR-2 is the form where crypto is held as an investment and the reporting is confined to Schedule VDA.

This page states the law and what CryptoKar computes from your trade history. It is not tax advice. Judgment calls belong with a chartered accountant. Sections and dates here were read against the source on 21 August 2026.

Built for the Indian crypto community.

Calculate Your Crypto Tax

Calculate My Taxes →

Import your exchange data and get started. Supports CoinDCX, WazirX, Binance and Bybit.