Budget 2026: India Needs Balanced Crypto Tax Structure Amidst Rapid Growth

• India's crypto economy grew significantly, with transaction volume exceeding 51,000 crore rupees in FY24-25, a 41% increase from the previous year.
• Current VDA tax rules are stringent: 30% flat tax, no loss adjustment/carry-forward, and 1% TDS on transactions above 10,000 rupees.
• These strict rules push investors to foreign exchanges, hindering domestic platforms and tax compliance despite India being a global crypto adoption leader.
• Government has taken steps for transparency, including mandatory FIU registration for VASPs, strict KYC/AML, and tightened reporting rules.
• Budget 2026 is a crucial opportunity to refine the tax framework by reconsidering tax rates, allowing loss adjustments, clarifying VDA categorization, and establishing clear rules for acquisition cost, gifted crypto, and non-resident taxation.

Why It Matters: Budget 2026 must balance crypto taxation to foster domestic growth and compliance, addressing current stringent rules.