Market News

Crypto Clarity in India: Upcoming Budget 2026 Sparks Hope for Reform

As India approaches the Union Budget 2026, the crypto industry is optimistic about potential reforms that could bring clarity and fairness to the tax landscape.

Discussions have intensified regarding the regulation of digital assets, aiming to replace the current cumbersome tax framework that has stifled domestic trading activities.

Currently, cryptocurrencies are taxed at a flat 30% on profits, with an additional 1% Tax Deducted at Source (TDS) on every transaction, leaving investors frustrated and pushing many to seek alternatives outside the country.

Industry leaders, including CoinDCX CEO Sumit Gupta, advocate for a "reset" in approach with suggestions including lowering the TDS to 0.01% and allowing for income slab-based taxation.

CoinDCX data highlights a vibrant crypto market in India, comprising over 21 million users and significant funds in reserves, illustrating the demand for a more supportive regulatory environment.

The anticipation surrounding Budget 2026 is palpable as stakeholders hope for a framework that encourages trading on local platforms rather than abroad.

Nonetheless, the government is proceeding cautiously, emphasizing oversight amid concerns about the borderless nature of cryptocurrencies.

The Income Tax Department and Reserve Bank of India have stepped up monitoring efforts, reflecting the tension between regulatory caution and the need for reform.

Ultimately, the upcoming budget could redefine the crypto landscape in India, balancing necessary regulation with the growth potential of the digital asset market.

The community eagerly awaits the announcement, hoping it will lead to significant advancements rather than a continuation of the status quo.