Excitement is in the air as February 1st approaches, and the countdown to Budget 2026 gets underway. Digital asset enthusiasts in India have been feeling as though they are running a marathon with heavy weights strapped to their ankles for several years. As the Finance Minister prepares her briefcase, the local tech community is hoping for a shift from strict rules to a supportive hug for innovation.
Fixing the 1% TDS Problem
One of the biggest hurdles today is the 1% TDS on every single trade. While the government wants to keep an eye on transactions, this high rate has accidentally sucked the life out of the market. Investors feel their money is constantly being nibbled away, even when they aren’t making a profit. Leading voices, including founders of major Indian exchanges, are now urging the government to rationalize this rate to 0.01%.
“The argument is simple: you can still track the data without draining the trader’s pocket.”
Making Crypto Tax India Fair for Everyone
Right now, Crypto Tax India feels a bit like a penalty. With a flat 30% tax and no way to balance out losses, many feel the system is one-sided. If you lose money on one asset but gain on another, you still pay the full tax on the win. Investors are now asking for Virtual Digital Assets (VDA) to be treated more like stocks or gold. Allowing people to offset their losses would bring a sense of fairness back to the digital economy.
Bringing Users Back to Indian Crypto Exchanges
Because of the current heavy rules, many people have moved their money to international platforms. This isn’t just a loss of tax revenue; it’s a loss of safety. By making the rules more friendly, the government can encourage people to return to Indian Crypto Exchanges.
A Bright Future Ahead
India has the talent and the passion to lead the world in digital finance. Budget 2026 is the perfect moment to turn the page. By relaxing the tax grip and recognizing the value of the blockchain world, the government can transform India into a global hub for the future of money.
