Budget 2026: From 1% TDS to 30% tax Crypto investors have big hopes from the budget, will talks be held on the demand of the industry?

Cryptocurrency In Budget 2026: As the date of Union Budget 2026-27 is approaching, India’s crypto investors and Web3 startups are asking the same question, will there be any cut in the hefty tax on Virtual Digital Assets (VDA) this time? The crypto industry has been continuously demanding tax reforms since the strict rules implemented in Budget 2024.

At present, there is a flat tax of 30% on income from cryptocurrency in India. Apart from this, 1% TDS (Tax Deducted at Source) is deducted on every transaction. At the same time, you cannot offset the loss in one coin with the profit of another coin. Mining or infrastructure expenses cannot be deducted as costs.

Suggestion of ‘India Web3 Association’

Industry experts and the ‘India Web3 Association’ suggest that cryptocurrencies be removed from the category of speculative (like gambling or lottery) and considered as ‘Capital Assets’. There is a demand that the tax rate should be reduced to 20% or it should be kept as per the income slab like other properties.

‘Investors’ mood spoiled due to ban on set off’

Mudrex CEO Edul Patel says India continues to be one of the world leaders in crypto adoption, which reflects the strong and growing interest of Indian investors in digital assets. Although the Union Budget 2022 gave the sector much-needed recognition, some measures, especially 1% TDS on transactions, pushed trading activity to offshore platforms, reducing visibility and participation in the domestic ecosystem. The ban on setting off losses against profits has also spoiled the mood of investors.

Also read: Why does the stock market tremble before the budget? This trend of ‘awe’ has been going on for 15 years, know the real reason

What is important for India’s crypto industry?

Edul Patel further said that as we approach FY27 union budget As we are getting closer to , there is an opportunity to adopt a more balanced and forward-thinking approach. Reducing TDS to 0.1% and allowing loss offset will reduce friction for investors, increase transparency and support long-term, sustainable growth of India’s crypto industry.