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India’s Crypto Industry Lobbies for Tax Reforms Ahead of Budget 2026

India’s Crypto Industry Lobbies for Tax Reforms Ahead of Budget 2026

Author:

Global Cryptocurrency

Published:

2026-01-20 14:29:02

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BTCCSquare news:

Indian cryptocurrency executives are intensifying efforts to revise the country's stringent tax policies before Budget 2026. The current framework—featuring a 1% transaction tax (TDS) and flat 30% levy on virtual digital asset (VDA) gains—has driven trading volumes to offshore platforms, undermining local exchanges and tax revenue.

Since their 2022 implementation, these measures improved transaction transparency but decimated onshore liquidity. WazirX's Nischal Shetty argues the upcoming budget presents a chance to recalibrate: "A balanced approach can preserve compliance without stifling innovation." Unadjusted, the rules risk perpetuating capital flight and weakening consumer protections as traders migrate to unregulated offshore venues.

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