Crypto Industry Demands Tax Rationalisation, Loss Set-off in Budget 2026-27
Business
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Moneycontrol•28-01-2026, 11:46
Crypto Industry Demands Tax Rationalisation, Loss Set-off in Budget 2026-27
- •India's crypto sector seeks capital gains tax rationalisation and re-evaluation of the 1% TDS on exchange transactions in the upcoming Union Budget.
- •The current 30% VDA tax and 1% TDS, implemented four years ago, have decimated trading volumes by over 80% and shifted activity offshore.
- •Industry leaders like Dilip Chenoy (Bharat Web3 Association) and Ashish Singhal (CoinSwitch) advocate for loss set-off provisions and a reduction in TDS to 0.01% or a higher threshold.
- •A CoinSwitch survey reveals 59% of respondents reduced crypto participation due to current taxes, with 61% favoring mainstream financial taxation for crypto.
- •Recent FIU-IND guidelines tightened KYC norms for VDA companies, requiring live selfies and precise location data for account creation, aiming for regulatory clarity.
Why It Matters: The Indian crypto industry urgently seeks tax reforms in Budget 2026-27 to revive domestic trading and innovation.
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