India has emerged as one of the world’s largest crypto markets, with an estimated 100+ million crypto users, accounting for nearly 80% of Indian investors actively holding or trading digital assets, according to recent industry surveys. Despite this massive adoption, participation has slowed, with nearly 58% of users reporting reduced crypto activity due to the current tax structure. The existing framework includes a 30% flat tax on crypto profits and a 1% TDS on every transaction, which many investors say discourages frequent trading and long-term innovation in the sector.
As the Union Budget 2026 approaches, pressure is building from India’s crypto community for policy reforms. Surveys indicate that around 61% of Indian crypto users prefer a taxation model aligned with equities or mutual funds, while 17% support a separate crypto-specific tax framework. Industry voices argue that easing tax friction could unlock fresh participation, boost compliance, and restore growth momentum in one of the fastest-growing digital asset markets globally. Investors are now watching closely to see whether the upcoming budget reflects these expectations and recalibrates India’s approach to crypto taxation.
