India Maintains Crypto Tax Structure Amid Industry Pushback
India's 2026-27 Union Budget leaves cryptocurrency taxation unchanged, retaining the controversial 30% levy on profits and 1% TDS on transactions. The decision comes despite sustained lobbying from industry players who argue the regime stifles trading activity.
New compliance measures take effect April 1, introducing penalties of ₹200 per day for non-filing and ₹50,000 for reporting errors under Section 509. Market participants note the unchanged framework continues to depress liquidity on domestic exchanges.
"The tax structure creates operational friction without addressing evasion risks," said Ashish Singhal of CoinSwitch, advocating for reduced TDS rates to 0.01%. The standoff reflects broader tensions between regulators seeking oversight and an industry battling for survival.
