The rupee’s slide toward Rs. 100 per US dollar could increase the INR value of dollar-linked crypto balances, particularly USDT. However, a weaker rupee does not increase the tokens held, while India’s digital asset taxes remain applicable.
Rupee Weakness Changes USDT’s INR Value
The rupee breached Rs. 96 per dollar on September 29, reaching a two-month low of Rs. 96.1450. Reuters reported that higher oil prices and foreign portfolio outflows pressured the currency, while India’s dependence on imported energy increased sensitivity to the oil shock.
On September 30, the rupee recovered to around Rs. 95.97 as Reserve Bank of India intervention helped limit losses. It remained headed for declines of roughly 0.8% in September and 1.3% for the quarter, according to Reuters.
For traders holding dollar-pegged stablecoins, depreciation changes the INR conversion value. At Rs. 90 per dollar, 10,000 USDT would be worth approximately Rs. 9 lakh. At Rs. 96, the same balance becomes roughly Rs. 9.6 lakh. If USD/INR reaches Rs. 100, its rupee value would rise to Rs. 10 lakh. That is Rs. 1 lakh more than at Rs. 90 without accumulating additional USDT.
Taxes Remain an Important Factor
Currency depreciation does not remove India’s crypto tax obligations. According to the Income Tax Department, gains from transfers of virtual digital assets (VDAs) are taxed at 30%, alongside applicable surcharge and 4% cess.
India also maintains tax-deduction requirements on qualifying VDA transfers. The department’s framework includes Form 141 for TDS connected with transfers of virtual digital assets.
A higher USDT-INR conversion amount therefore should not automatically be treated as additional after-tax profit. The tax outcome depends on the transaction, acquisition cost and applicable provisions.
Why Timing Could Matter
A trader holding 10,000 USDT still owns 10,000 USDT whether USD/INR trades at Rs. 90, Rs. 96 or Rs. 100. What changes is the amount received when that balance is converted into rupees.
Exchange-specific USDT-INR prices can trade above or below interbank USD/INR given liquidity and demand. For Indian traders, the rupee-USDT gap may become increasingly relevant when deciding when to convert dollar-linked crypto balances into INR.
Also Read: Why Crypto Continues to Attract Indian Investors
Disclaimer : Crypto News India does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.
