New Delhi, June 8 -- Cryptocurrency futures and options (F&O) refers to the trading of derivative contracts based on underlying digital assets like Bitcoin and Ethereum. It allows you to take positions on price movements or hedge existing positions without actually buying or owning the asset in its physical form.

In India, the tax treatment of such instruments remains an evolving area as the Indian tax department has not yet issue specific guidance on crypto F&O taxation, according to Prateek Gupta, Head of Business at Mudrex.

As cryptocurrency F&O trading has emerged as a growing segment within digital asset markets, let's see it works:

Income from crypto F&O is generally treated as non-speculative business income, similar to other de...