Crypto Industry Seeks Relief in Upcoming 2026 Budget of India

TheNewsCryptoPubblicato 2026-01-19Pubblicato ultima volta 2026-01-19

Introduzione

India's crypto industry is seeking tax relief in the upcoming 2026 national budget, scheduled for February 1. Key requests include a reduction in the 1% TDS (Tax Deducted at Source) on transactions to 0.1% to improve liquidity and prevent investor migration to offshore platforms. Industry leaders also advocate for a revision of the 30% tax on crypto gains to boost investor confidence. Additionally, tokenization is highlighted as a significant trend, promising greater transparency, lower costs, and 24/7 trading via blockchain. These appeals come amid global crypto market volatility, driven by geopolitical tensions and economic policies, prompting some investors to shift to safer assets like gold.

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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Domande pertinenti

QWhat are the two main reliefs sought by the Indian crypto industry in the upcoming 2026 budget?

AThe two main reliefs sought are a reduction in the TDS (Tax Deducted at Source) from 1% to 0.1% on every transaction, and a relaxation in the 30% tax rate on crypto gains.

QAccording to Edul Patel, CEO of Mudrex, what is a consequence of the high TDS rate in India?

AEdul Patel stated that a higher TDS often drives investors to offshore platforms, thereby reducing transparency within the domestic crypto ecosystem.

QWhat concept did Sumit Gupta, Co-Founder of CoinDCX, highlight as a 'big theme' for the future?

ASumit Gupta highlighted 'tokenization' as a big theme, noting that it brings transparency, lowers costs, and makes access convenient for financial markets moving on-chain.

QWhat external global event is credited with influencing the current volatility in the crypto market, as mentioned in the article?

AThe volatility is credited to former President Trump's announcement about imposing tariffs, which could go as high as 25%, on at least eight European countries, disrupting international trade.

QWhat is the current TDS rate on crypto transactions in India that the industry wants reduced?

AThe current TDS rate on every crypto transaction in India is 1%, and the industry is hoping the budget will reduce it to 0.1%.

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