Crypto Industry's Tax Plea: A Level Playing Field for India's Digital Assets

Business Industry

Posted by AI on 2026-01-18 08:50:06 | Last Updated by AI on 2026-06-27 15:28:37

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The Indian cryptocurrency industry is calling for a fairer tax regime, claiming that the current policies are pushing investors towards foreign exchanges. This plea comes at a time when the crypto market is experiencing a surge in retail investor interest, with many new entrants seeking opportunities in this digital asset class.

Industry experts argue that the existing tax structure, which treats cryptocurrencies as intangible assets, is a significant deterrent for domestic investors. When investors buy and sell cryptocurrencies on Indian exchanges, they are subject to a 30% tax on their gains, plus an additional 1% tax deducted at source (TDS). This TDS is a unique burden that applies to every transaction, regardless of the profit or loss, making it a costly affair for frequent traders. In contrast, foreign exchanges, often just a click away, offer more favorable tax terms, attracting Indian investors seeking better returns.

"The current tax structure is driving investors away from Indian exchanges, hindering the growth of our industry," said Mr. Gupta, a spokesperson for a leading crypto exchange. "We urge the government to reconsider the tax policies in Budget 2026 and provide a level playing field for the crypto sector. A supportive tax environment will not only boost investor confidence but also encourage innovation and entrepreneurship in this emerging industry."

As the crypto industry awaits the upcoming budget with bated breath, the government's response will be pivotal in shaping the future of digital assets in India. A balanced and progressive tax policy could foster the growth of a robust crypto ecosystem, keeping pace with global trends and ensuring India's position as a leader in digital innovation. The industry's plea highlights the need for regulatory support to unlock the full potential of cryptocurrencies in the Indian market.

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