India Maintains 30% Crypto Tax in 2026 Budget

Crypto investors and exchanges anticipate limited short-term changes from India’s decision to adhere to its current crypto tax policy. This stability may deter immediate market disruptions.

India’s Budget 2026, led by Finance Minister Nirmala Sitharaman, retains the existing tax framework on cryptocurrencies, continuing the 30% tax on gains and 1% TDS on transactions. Despite community appeals for reduced taxes and loss set-offs, these requests were not included. Key figures, such as Edul Patel from Mudrex and Nischal Shetty from WazirX, highlighted potential benefits of lower taxes for growth transparency.

The decision may impact Indian crypto investors by maintaining the existing tax obligation, which some argue might restrict market participation. Raj Karkara from ZebPay described the framework as providing stability amid the industry’s maturation.

“Reducing TDS to 0.01 percent and allowing loss offsetting would ease friction for investors, improve transparency, and support the long-term, sustainable growth of India’s crypto industry.” — Edul Patel, CEO, Mudrex

The retention of this tax framework might slow the domestic market’s expansion, as some traders prefer international platforms.

Potential financial and regulatory outcomes include continued offshore crypto trading and limited domestic liquidity. Ashish Singhal of CoinSwitch mentioned that new penalties for reporting inaccuracies are a crucial step towards improved tax compliance. Historical trends suggest this could further push traders to non-domestic platforms, affecting local market dynamics.