{"id":10940,"date":"2026-08-08T19:53:37","date_gmt":"2026-08-08T19:53:37","guid":{"rendered":"https:\/\/www.caindelhiindia.com\/blog\/?p=10940"},"modified":"2026-08-08T19:59:59","modified_gmt":"2026-08-08T19:59:59","slug":"difference-in-futures-crypto-perpetual-futures-contracts","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/difference-in-futures-crypto-perpetual-futures-contracts\/","title":{"rendered":"Difference in Futures &#038; Crypto Perpetual Futures Contracts"},"content":{"rendered":"<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-6984\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/04\/cropto.jpeg\" alt=\"Crypto Trading Company\" width=\"983\" height=\"654\" \/><\/h2>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a79246fb71f2\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a79246fb71f2\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/difference-in-futures-crypto-perpetual-futures-contracts\/#What_Is_the_Difference_Between_Crypto_Futures_and_Crypto_Perpetual_Futures_Contracts\" title=\"What Is the Difference Between Crypto Futures and Crypto Perpetual Futures Contracts?\">What Is the Difference Between Crypto Futures and Crypto Perpetual Futures Contracts?<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/difference-in-futures-crypto-perpetual-futures-contracts\/#Taxation_of_Crypto_Futures_and_Perpetual_Contracts_in_India\" title=\"Taxation of Crypto Futures and Perpetual Contracts in India\">Taxation of Crypto Futures and Perpetual Contracts in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/difference-in-futures-crypto-perpetual-futures-contracts\/#Crypto_Swap\" title=\"Crypto Swap \">Crypto Swap <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caindelhiindia.com\/blog\/difference-in-futures-crypto-perpetual-futures-contracts\/#Reporting_Crypto_Transactions_in_the_Income_Tax_Return\" title=\"Reporting Crypto Transactions in the Income Tax Return\">Reporting Crypto Transactions in the Income Tax Return<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.caindelhiindia.com\/blog\/difference-in-futures-crypto-perpetual-futures-contracts\/#Common_Crypto_Compliance_Mistakes_to_Avoid\" title=\"Common Crypto Compliance Mistakes to Avoid\">Common Crypto Compliance Mistakes to Avoid<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.caindelhiindia.com\/blog\/difference-in-futures-crypto-perpetual-futures-contracts\/#Assuming_Earlier_Crypto_Transactions_Were_Not_Taxable\" title=\"Assuming Earlier Crypto Transactions Were Not Taxable\">Assuming Earlier Crypto Transactions Were Not Taxable<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.caindelhiindia.com\/blog\/difference-in-futures-crypto-perpetual-futures-contracts\/#Failing_to_Maintain_Records_of_P2P_Transactions\" title=\"Failing to Maintain Records of P2P Transactions\">Failing to Maintain Records of P2P Transactions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.caindelhiindia.com\/blog\/difference-in-futures-crypto-perpetual-futures-contracts\/#Believing_Offshore_Wallets_and_Foreign_Exchanges_Are_Invisible\" title=\"Believing Offshore Wallets and Foreign Exchanges Are Invisible\">Believing Offshore Wallets and Foreign Exchanges Are Invisible<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.caindelhiindia.com\/blog\/difference-in-futures-crypto-perpetual-futures-contracts\/#Mixing_Personal_and_Business_Crypto_Transactions\" title=\"Mixing Personal and Business Crypto Transactions\">Mixing Personal and Business Crypto Transactions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.caindelhiindia.com\/blog\/difference-in-futures-crypto-perpetual-futures-contracts\/#Inadequate_Reporting_of_Crypto_Transactions_in_the_ITR\" title=\"Inadequate Reporting of Crypto Transactions in the ITR\">Inadequate Reporting of Crypto Transactions in the ITR<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.caindelhiindia.com\/blog\/difference-in-futures-crypto-perpetual-futures-contracts\/#Ignoring_Regulatory_Obligations_for_Crypto_Businesses\" title=\"Ignoring Regulatory Obligations for Crypto Businesses\">Ignoring Regulatory Obligations for Crypto Businesses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.caindelhiindia.com\/blog\/difference-in-futures-crypto-perpetual-futures-contracts\/#Undertaking_Cross-Border_Crypto_Transactions_Without_Documentation\" title=\"Undertaking Cross-Border Crypto Transactions Without Documentation\">Undertaking Cross-Border Crypto Transactions Without Documentation<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.caindelhiindia.com\/blog\/difference-in-futures-crypto-perpetual-futures-contracts\/#Need_Assistance_with_Crypto_Tax_Filing\" title=\"Need Assistance with Crypto Tax Filing?\">Need Assistance with Crypto Tax Filing?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_Is_the_Difference_Between_Crypto_Futures_and_Crypto_Perpetual_Futures_Contracts\"><\/span><span style=\"color: #000080;\"><strong>What Is the Difference Between Crypto Futures and Crypto Perpetual Futures Contracts?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>Cryptocurrencies are legal to buy, hold, and trade in India, but they are subject to one of the strictest tax regimes in the country. With increased reporting requirements and data-sharing by exchanges, errors in reporting crypto transactions can now lead to notices, penalties, and compliance issues.<\/li>\n<li>If you have invested in, traded, or received crypto assets, it is important to understand how they are taxed, which transactions trigger tax liability, how to disclose them correctly in your income tax return, and the consequences of non-compliance.<\/li>\n<\/ul>\n<ul>\n<li>Crypto futures and crypto perpetual futures are popular cryptocurrency derivative products that allow traders to speculate on the future price movements of digital assets without actually owning them. While they may appear similar, there are important differences between the two.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Taxation_of_Crypto_Futures_and_Perpetual_Contracts_in_India\"><\/span><span style=\"color: #000080;\"><strong>Taxation of Crypto Futures and Perpetual Contracts in India<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Understanding the tax treatment of crypto derivatives can be challenging, particularly because the regulatory framework surrounding digital assets continues to evolve.<strong>\u00a0<\/strong><\/li>\n<\/ul>\n<ul>\n<li>Cryptocurrency derivatives such as crypto futures, crypto options, crypto perpetual futures contracts, NFT (non-fungible tokens), and other virtual digital assets may give rise to taxable income that must be appropriately disclosed while filing the income tax return.<\/li>\n<\/ul>\n<ul>\n<li>Taxpayers engaged in crypto trading should carefully maintain records of all transactions, including contract values, profits, losses, funding payments, brokerage charges, and settlement details to ensure accurate tax reporting and compliance with applicable provisions of the Income Tax Act<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Crypto_Swap\"><\/span><span style=\"color: #000080;\"><strong>Crypto Swap <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>A crypto swap is the direct exchange of one cryptocurrency for another without first converting it into fiat currency such as Indian Rupees. Although no cash may be involved, the transaction is generally treated as a taxable transfer for income-tax purposes.<\/li>\n<\/ul>\n<p><span style=\"color: #000080;\"><strong>Crypto Swaps Taxations in India: \u00a0<\/strong><\/span><\/p>\n<ul>\n<li>Exchanging one cryptocurrency for another is treated as a taxable transfer under Indian tax laws. Any profit earned from a crypto swap is generally subject to a flat tax rate of 30%, along with applicable cess and surcharge.<\/li>\n<\/ul>\n<p><span style=\"color: #000080;\"><strong>Crypto Derivatives Taxed in India<\/strong><\/span><\/p>\n<ul>\n<li>Income arising from crypto-related transactions, including crypto derivatives, is subject to the tax provisions applicable to Virtual Digital Assets. Gains are generally taxed at 30%, and a 1% Tax Deducted at Source may apply on eligible crypto transfers u\/s 194S.<\/li>\n<\/ul>\n<p><span style=\"color: #000080;\"><strong>Taxpayers Reduce Their Crypto Tax Burden <\/strong><\/span><\/p>\n<p>While tax evasion is illegal, taxpayers can improve tax efficiency through proper planning, such as:<\/p>\n<ul>\n<li>Maintaining accurate records of all crypto transactions.<\/li>\n<li>Exploring eligible deductions and tax-saving investments available under the Income Tax Act.<\/li>\n<li>Seeking professional advice from a qualified chartered accountant to ensure compliance and optimize tax positions.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Reporting_Crypto_Transactions_in_the_Income_Tax_Return\"><\/span><span style=\"color: #000080;\"><strong>Reporting Crypto Transactions in the Income Tax Return<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The Income Tax Department requires taxpayers to disclose income arising from virtual digital assets through the dedicated schedule of virtual digital assets in the income tax return.<\/li>\n<li>Whether you earn profits from trading cryptocurrencies, crypto futures, perpetual contracts, NFT (non-fungible token) or other qualifying digital assets, accurate disclosure is essential. Proper reporting helps avoid discrepancies, compliance notices, and potential penalties.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Common_Crypto_Compliance_Mistakes_to_Avoid\"><\/span><span style=\"color: #000080;\"><strong>Common Crypto Compliance Mistakes to Avoid<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>As crypto regulations and reporting requirements continue to evolve, taxpayers and crypto businesses often make compliance errors that can lead to notices, penalties, or regulatory scrutiny. Some of the most common mistakes include:<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Assuming_Earlier_Crypto_Transactions_Were_Not_Taxable\"><\/span><span style=\"color: #000080;\"><strong>Assuming Earlier Crypto Transactions Were Not Taxable<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li>Many investors believe that crypto transactions undertaken before the introduction of the specific VDA tax regime were exempt from reporting. This is a misconception. Even prior to the introduction of the dedicated crypto tax provisions, gains from crypto transactions could still be taxable under general income-tax principles. As a result, historical transactions may continue to attract scrutiny from the tax authorities.<\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"Failing_to_Maintain_Records_of_P2P_Transactions\"><\/span><span style=\"color: #000080;\"><strong>Failing to Maintain Records of P2P Transactions<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li>Peer-to-peer (P2P) crypto transactions without proper documentation can create significant compliance challenges. Taxpayers should maintain records of counterparties, transaction details, payment evidence, and KYC documentation wherever possible. Inadequate documentation may make it difficult to substantiate the source and nature of transactions during a tax inquiry.<\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"Believing_Offshore_Wallets_and_Foreign_Exchanges_Are_Invisible\"><\/span><span style=\"color: #000080;\"><strong>Believing Offshore Wallets and Foreign Exchanges Are Invisible<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li>Some investors assume that crypto assets held on overseas exchanges or foreign wallets remain outside the view of Indian authorities. However, increasing reporting requirements, international information-sharing initiatives, and enhanced regulatory cooperation are steadily improving transparency in cross-border crypto holdings and transactions.<\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"Mixing_Personal_and_Business_Crypto_Transactions\"><\/span><span style=\"color: #000080;\"><strong>Mixing Personal and Business Crypto Transactions<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li>Using the same wallet or exchange account for both personal investments and business-related transactions can complicate record-keeping and audit trails. Maintaining separate wallets and accounts helps ensure accurate reporting and simplifies compliance during assessments or audits.<\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"Inadequate_Reporting_of_Crypto_Transactions_in_the_ITR\"><\/span><span style=\"color: #000080;\"><strong>Inadequate Reporting of Crypto Transactions in the ITR<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li>Taxpayers often fail to properly disclose cryptocurrency transactions in <strong>Schedule VDA<\/strong> while filing their Income Tax Return. Even where no significant gains arise, maintaining accurate records and reporting transactions correctly helps reduce the likelihood of discrepancies or compliance notices.<\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"Ignoring_Regulatory_Obligations_for_Crypto_Businesses\"><\/span><span style=\"color: #000080;\"><strong>Ignoring Regulatory Obligations for Crypto Businesses<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li>Businesses engaged in crypto-related activities should carefully determine whether they are required to comply with registration, reporting, KYC, anti-money laundering (AML), or other regulatory obligations. Failure to comply can result in penalties, operational restrictions, and other enforcement actions.<\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"Undertaking_Cross-Border_Crypto_Transactions_Without_Documentation\"><\/span><span style=\"color: #000080;\"><strong>Undertaking Cross-Border Crypto Transactions Without Documentation<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li>Transfers involving foreign exchanges, overseas wallets, or non-resident counterparties should be supported by proper documentation. Cross-border crypto transactions may attract scrutiny from multiple regulators, making comprehensive record-keeping an essential compliance practice<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Need_Assistance_with_Crypto_Tax_Filing\"><\/span><span style=\"color: #000080;\"><strong>Need Assistance with Crypto Tax Filing?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>If you earn income from cryptocurrency trading or crypto derivatives, calculating your tax liability can be complex. Professional guidance can help ensure accurate computation of gains, proper disclosure in Schedule Virtual Digital Assets, and compliance with reporting requirements.<\/li>\n<li>Successful crypto compliance depends on maintaining detailed records, accurately reporting transactions, preserving audit trails, complying with tax and regulatory requirements, and seeking professional advice when necessary. As regulatory oversight continues to increase, proactive compliance is the best way to minimize tax disputes, penalties, and enforcement risks.<\/li>\n<li>With income tax return filing underway, taxpayers holding or trading virtual digital assets should ensure that all crypto-related income is correctly reported in their returns. Consulting a qualified chartered accountant or tax professional can make the filing process smoother, minimize compliance risks, and help you meet your tax obligations with confidence.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>What Is the Difference Between Crypto Futures and Crypto Perpetual Futures Contracts? Cryptocurrencies are legal to buy, hold, and trade in India, but they are subject to one of the strictest tax regimes in the country. With increased reporting requirements and data-sharing by exchanges, errors in reporting crypto transactions can now lead to notices, penalties, &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[792],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/10940"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=10940"}],"version-history":[{"count":3,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/10940\/revisions"}],"predecessor-version":[{"id":10943,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/10940\/revisions\/10943"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=10940"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=10940"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=10940"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}