Archive · 13 Jan 2026
India's Crypto Industry Seeks Tax Reset and Clear Regulations
India's crypto industry is asking the government to change the rules and taxes for cryptocurrencies.
Right now, there are high taxes and strict rules that make it hard for crypto companies to grow.
The industry wants lower taxes, clearer rules, and a fair playing field so that more businesses stay in India.
The government has been focusing on making sure people follow the rules, but the industry says this is not enough.
They hope the upcoming budget will bring better rules that help the crypto market grow.
India's crypto industry is calling for regulatory clarity and a more balanced tax framework ahead of the Union Budget 2026.
Current tax rates include a 30% tax on crypto gains and a 1% tax deducted at source (TDS) on transactions.
Industry leaders are pushing for a reduction in TDS to 0.01% and alignment of the 30% capital gains tax with income tax slabs.
The lack of a comprehensive regulatory roadmap is seen as the biggest bottleneck for long-term growth in the crypto sector.
The government has mandated strict KYC and AML norms for Virtual Asset Service Providers, but the industry seeks clearer rules and parity between domestic and offshore platforms.
- Who
- India's crypto and Web3 ecosystem, including industry leaders and tax experts
- What
- Call for regulatory clarity and a more balanced tax framework ahead of Union Budget 2026
- When
- Approaching Union Budget 2026
- Where
- India
- Why
- To foster growth, retain liquidity, and prevent offshore migration of crypto businesses
- Current Tax Rate
- 30% on crypto gains
- TDS on Transactions
- 1% on transactions exceeding ₹50,000 for specified persons or ₹10,000 for others
- KYC and AML Norms
- Mandatory registration with FIU and strict compliance
- Industry Demand
- Reduction in TDS, clearer tax rules, and regulatory parity
- STT Collection Shortfall
- Expected to miss Budget target due to regulatory tightening
- Investor Profile
- Growing share of experienced investors from traditional asset classes
- Regulatory Bottleneck
- Lack of comprehensive regulatory roadmap
- Impact of Regulations
- Potential offshore migration of innovation and liquidity
