India's 2026 budget is likely to prioritize transparency in cryptocurrencies over increasing taxes.

2026-01-30 14:04:47

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India’s 2026 budget is expected to focus on streamlining and clarifying the legal framework for cryptocurrencies rather than tightening taxes. The current policy on Virtual Digital Assets (VDA) is criticized for reducing liquidity, widening spreads, and pushing investors to foreign platforms.

The cryptocurrency industry hopes the government will reduce or adjust the 1% TDS rate, allow offsetting losses with gains from VDA, and include transaction costs such as gas fees into the cost basis. Currently, India applies a flat 30% tax on VDA profits, with no loss offsetting or holding period benefits.

According to experts, if reformed in a more balanced manner, the 2026 Budget could become a significant turning point, helping to promote legal compliance, increase the competitiveness of the domestic market, and limit capital outflows.

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