India is gearing up for its next budget, and the national crypto market is hoping to get some relief in it. The 2026 budget is scheduled to be presented on February 01, 2026, by the current Finance Minister, Nirmala Sitharaman. The top-most points are TDS cut and reset in taxation. These calls come at a time when the global crypto market is going through heavy volatility.
Relief Sought by Indian Crypto Industry
Two points dominated the most, namely a reduction in TDS and relaxation in taxation. The Indian authorities currently charge a 1% TDS on every transaction. The industry is hoping that the budget brings it down to 0.1%, citing that a high TDS has affected liquidity and the efficiency of investors to trade.
Edul Patel, CEO of Mudrex, according to a report by News18, has said that a higher TDS often drives investors to an offshore platform. Thereby reducing transparency within the domestic ecosystem. Patel added that a lower TDS could lower the friction and lead to a sustainable Indian crypto market.
For tax relaxation, Vikas Gupta, Country Manager at ByBit for India, according to the same report, has underlined that a 30% rate on crypto gains is possibly pushing investors to a low-cost overseas platform. He added that a revision to the crypto gain tax rate could improve the confidence of investors.
Tokenization as a Concept
Tokenization as a concept or a theme was talked about by Sumit Gupta, Co-Founder of CoinDCX, in an interaction with CNBC TV18. He first underlined that industry leaders in the US were expecting momentum in the next year due to regulatory clarity, new financial products, and institutional participation. Then, he called tokenization a big theme, adding that the usage of stablecoins and blockchain-based assets was growing.
Sumit Gupta said that tokenization was bringing transparency, lowering the cost, and making access convenient. He also addressed that financial markets moving on-chain would eventually allow investors to trade 24 hours a day via blockchain technology. Sumit Gupta had earlier highlighted three points to reset the Indian crypto market.
Volatility in Crypto Market
The global crypto market is volatile at the moment, with big tokens like BTC and ETH losing their respective values significantly. The influence is credited to Trump’s announcement about imposing tariffs on at least eight European countries. This rate could go as high as 25%, which would only disrupt international trade further.
The US Federal Reserve is less likely to cut rates, and the US Supreme Court could soon deliver a verdict on Trump’s current tariff rates. These are adding to the ongoing volatility in the global crypto market. Investors are even seen diverting their investments to safer options like Gold and Silver.
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