India’s 2026 Budget Maintains Stringent Crypto Tax Regime
India's Union Budget 2026 has dashed hopes for crypto tax reform, maintaining the controversial 30% capital gains tax and 1% transaction TDS. The unchanged policy comes despite FY2024-25 data showing 49% of investors suffered net losses while still contributing ₹511.83 crore in TDS collections.
Finance Minister Nirmala Sitharaman's February 1 speech notably excluded any mention of digital assets, signaling continued regulatory ambiguity. The oversight persists even as India leads global crypto adoption with 93 million users—more than any other nation.
New enforcement measures take effect April 2026, including ₹200 daily penalties for late reporting and ₹50,000 fines for inaccurate disclosures. Market participants lament the lost opportunity to align with progressive jurisdictions like Singapore and Dubai, where crypto frameworks actively encourage institutional participation.
