Budget 2022 marked the formal recognition of cryptocurrencies as virtual digital assets with a defined tax regime.Also read | Binance lists 12 themes that will define the crypto market in 2026. View the details
Current tax on cryptocurrency
The Income Tax Act contains key provisions (sections 115BBH and 194S) that govern the taxation of virtual digital assets (VDAs) such as cryptocurrencies, NFTs and tokens. VDA profits are taxed at a flat rate of 30%, with TDS of 1% on trades, while non-trading income can be taxed based on the individual’s income slab.
Here’s what some of the leading voices in the industry had to say:
Raj Karkara, COO, ZebPay
The Union Budget 2026 comes at a crucial time for the Indian crypto ecosystem, with the industry hopeful of the long-awaited regulatory clarity that can provide greater direction and confidence to investors. A clear and consistent framework for digital assets would help strengthen trust between investors, institutions and market participants, while enabling businesses to operate responsibly within well-defined boundaries.
From a tax perspective, a rationalization of the current 1% TDS on crypto transactions could meaningfully improve liquidity and encourage stronger onshore participation, while a revision of the 30% flat tax on VDA gains, in line with other asset classes and allowing loss offsets, would create a more balanced and predictable investment environment. Greater policy clarity could unlock innovation, responsibly scale India’s Web3 ecosystem, and strengthen the country’s role in the global crypto economy.
Nischal Shetty, Founder, WazirX
This Budget is a clear opportunity to refine a framework that supports transparency and compliance while promoting innovation.
Lower TDS at the transaction level and allowing loss offset could revive onshore liquidity, improve compliance and keep crypto activity within India’s regulated framework. Clear rules on compliance and reporting would boost investor confidence and support a sustainable digital asset ecosystem, helping India move towards its $5 trillion economy target, Shetty further added.
Pankaj Balani, CEO and co-founder of Delta Exchange
India’s leadership in global cryptocurrency adoption reflects strong participation from both retail users and advanced market participants. The upcoming Union Budget is an opportunity to match that momentum with a clear ‘Make in India’ approach to the digital assets industry.
The priority should be on supporting compliant domestic platforms that follow Indian KYC/AML norms and capital control rules, protect consumers’ data and contribute to India’s economic growth, rather than allowing offshore players to scale up by operating outside our regulatory perimeter.
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In this Budget, we hope to see a balanced regulatory framework that enables responsible innovation while robustly enforcing compliance. That means taking decisive action against entities offering unauthorized services and, through policy support, clearly distinguishing between compliant Indian platforms and non-compliant offshore operators.
Sumit Gupta, co-founder of CoinDCX
The virtual digital asset industry is obviously looking for measured relief, especially as it has been four years since the current tax framework was introduced and the decisions taken now can meaningfully accelerate innovation and help India emerge as a global leader in Web3 and VDA.
A crucial first step is to ensure clarity in the rules and mandate that all crypto exchanges implement TDS provisions uniformly, which will improve compliance and increase citizens’ protection from questionable, non-compliant operators through better regulatory compliance.
SB Seker, Head of APAC, Binance
The rapid adoption of blockchain and virtual digital assets (VDA) in India reflects both the size of the digital economy and the growing participation of private users. The upcoming budget presents an opportunity to strengthen the VDA ecosystem through prudent regulation and fiscal refinements that protect users, maintain financial stability and support responsible market development.
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