The Indian crypto industry has called for a favorable crypto tax in the upcoming budget for 2026. The industry also wants clear rules for digital assets in addition to a rationalization of the 1% TDS on crypto transactions to boost investor confidence and encourage foreign participation in the Indian crypto industry.
In the previous Union Budget 2025, the finance minister kept the existing tax frameworks for VDAs, despite repeated appeals from the industry.
The Indian crypto industry has always argued that the current rules have discouraged investors and traders from patronizing crypto exchanges in the country, highlighting fears that heavy capital may be moving abroad.
India calls for favorable crypto tax in 2026
India agreed to recognize cryptocurrencies as Virtual Digital Assets in its Budget 2022. The country introduced a defined tax regime that year. Under the Income Tax Act, VDAs such as cryptocurrencies, NFTs, and other digital tokens were taxed.
Gains from VDAs were taxed at a flat 30%, alongside a 1% tax deducted at source (TDS) on transactions. Meanwhile, non-trading income is taxed according to an individual’s income slab.
Raj Karkara, the Chief Operating Officer at ZebPay, mentioned that Budget 2026 is coming at an important time for India’s crypto industry. He noted that the industry is looking forward to the clarification that can bring confidence to investors and the market. Karkara also added that it is an opportunity to present a clear and consistent plan for the crypto industry.
Nichal Shetty, founder of WazirX, said that the budget offers the country and the regulators the opportunity to revisit the previous rules. He added that the government needs to look into the TDS and allow loss set-offs, which he claims would be good for liquidity and improve compliance. Shetty also added that clear rules on reporting would boost investor confidence.
Pankaj Balani, CEO and co-founder of Delta Exchange, said the current crypto adoption in the country should follow a clear approach. Balani stressed that regulators need to support compliant domestic platforms that follow rules, while acting against illegal platforms. He said the policy needs to clearly differentiate between complaint platforms in India and non-compliant platforms abroad.
Summit Gupta, co-founder of CoinDCX, said that the sector has been crying out for measured relief, especially during the four years that the current tax framework has been in use. He mentioned that any decision taken by the regulators now should be able to help improve innovation in India and help the country emerge as a global leader in Web3 and VDA. Gupta called for clear rules and the need for the implementation of TDS across all crypto exchanges.
SB Seeker, Head of APAC at Binance, said the adoption of crypto in India shows the power of the digital economy and growing retail participation. He added that Budget 2026 will present regulators with the opportunity to protect users and maintain financial stability through the right regulations.