India’s government has decided to maintain its existing cryptocurrency taxation framework in the 2026 national budget, offering no relief to crypto investors who were hoping for more favorable treatment.
The decision, announced as part of India’s annual budget proceedings, means crypto investors will continue operating under the current tax structure. Many in the industry had lobbied for reduced rates or simplified compliance requirements.
India’s crypto tax regime has been among the world’s most stringent, with gains on digital asset trades subject to ordinary income tax rates. The country had previously implemented a 1% tax deducted at source (TDS) on crypto transactions, adding another layer of cost for traders and investors.
The lack of change in the 2026 budget signals that the Indian government remains cautious about providing tax incentives for cryptocurrency adoption. Officials have expressed concerns about financial stability, money laundering, and the need for investor protection in the crypto sector.
This decision comes at a time when several other countries are exploring more crypto-friendly tax policies to attract digital asset businesses and talent. El Salvador, Singapore, and Portugal have implemented relatively favorable crypto tax treatments to position themselves as crypto hubs.
For India’s crypto community, the status quo means continued uncertainty around long-term tax obligations. Investors must track and report gains on every transaction, and tax compliance remains complex given the volatility and frequency of crypto trading.
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The Indian government has previously indicated its intention to regulate rather than ban cryptocurrencies, but the tax policy reflects a cautious approach. Officials have been developing comprehensive regulatory frameworks for the sector while maintaining fiscal controls.
Industry observers note that the lack of change doesn’t necessarily indicate hostility toward crypto. Rather, it suggests policymakers are taking time to understand the sector before implementing significant tax reforms.
For now, Indian crypto investors will need to continue navigating the existing tax obligations, which include reporting requirements and TDS compliance. The decision leaves open the possibility of future tax policy adjustments, though no timeline has been announced.
The 2026 budget maintains India’s cautious stance on cryptocurrency while the country continues developing its broader regulatory approach to digital assets.
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