cryptotax

As India presents its Union Budget 2026, the spotlight is on how crypto income will be taxed — and whether the controversial 30 % capital gains levy on virtual digital assets (VDAs) will be reconsidered. 🇮🇳💰

📌 What’s Happening Now:

• Current tax rules in India impose a flat 30 % tax on crypto gains, plus a 1 % TDS on transactions — and losses can’t be set off against gains. This has meant many traders pay tax even after losing money.

• New data shows many investors reported net losses yet still faced tax bills, pointing to a tax-outcome mismatch that’s straining liquidity in the market.

📉 Industry Calls for Reform:

Crypto stakeholders and exchanges are urging the government to rationalize the tax regime — including revisiting the high 30 % capital gains rate, reducing or restructuring the 1 % TDS, and allowing loss offsets to reflect actual trading outcomes.

⚖️ Budget Outcome Expectations:

While the Budget 2026 has not signaled formal changes yet, many expect focus on clarifying the tax framework rather than expanding or increasing the tax burden on crypto.

📌 Why It Matters:

If reforms arrive, they could improve domestic liquidity, trader confidence, and onshore activity — reversing a trend where trading shifts offshore due to tax friction.

#cryptotax #india

Short Intro
As India prepares its 2026 Union Budget, the crypto industry there is buzzing with regulatory expectations and potential reforms. Leading exchanges and industry players have outlined a wish list aimed at making the market more transparent and growth-friendly.
What Happened
Ahead of India’s 2026 national budget announcement, major crypto platforms operating in the country — including Mudrex, Giottus, WazirX, Bybit, and CoinSwitch — have called on policymakers to introduce clearer regulation and simplified tax policies for digital assets. One key focus is to reform the existing 1% Tax Deducted at Source (TDS) on all crypto transactions, which many industry participants say has dampened trading activity and liquidity. Leaders are pushing for a more balanced framework that supports transparency and compliance without stifling innovation.
Why It Matters
India is one of the world’s fastest-growing crypto markets by user base and retail participation. Regulatory clarity can reduce uncertainty, encourage institutional interest, and attract global crypto firms to set up operations locally. Reforming tax and compliance structures could also make everyday crypto use more practical for individuals and businesses, shaping India’s role as a major hub for digital assets. A thoughtful, balanced approach might help integrate crypto into the wider financial system, boosting adoption while managing risks.
Key Takeaways
India’s upcoming 2026 budget could introduce major crypto regulatory reforms.
Exchanges are urging clearer compliance rules and revised tax policies to support growth.
The 1% TDS on crypto trades is a central point of industry concern.
Regulatory clarity in India can boost both retail and institutional confidence.
Broader reforms could position India as a key player in the global crypto ecosystem
#CryptoRegulation #IndiaBudget #CryptoTax #Blockchain #DigitalAssets