India’s Union Budget 2026 is expected to play a pivotal role in shaping the future of cryptocurrency and Web3. With proposals to rationalize taxes, reduce TDS, and align digital asset rules with traditional frameworks, the government aims to balance innovation with compliance, restoring investor confidence and domestic growth.
The upcoming Union Budget 2026 is being closely watched by India’s crypto industry, which has faced challenges due to restrictive tax policies and regulatory uncertainty. Current rules, including a 30% tax on profits and 1% TDS on transactions, have driven significant trading activity offshore. Industry leaders believe reforms could bring users back to domestic platforms and foster innovation.
Key highlights from the announcement include
-
Budget proposals may reduce TDS rates and allow loss set-offs for digital assets.
-
Alignment of crypto taxation with traditional asset rules is under consideration.
-
Tiered compliance models could make regulations more accessible for smaller operators.
-
Amendments to PMLA aim to strengthen anti-money laundering safeguards while supporting innovation.
-
Industry seeks clarity to prevent further migration of users to offshore exchanges.
The Budget is seen as a critical moment to balance enforcement with growth. Rationalized taxation and clearer regulations could help India position itself as a hub for Web3 innovation, while ensuring financial stability and investor protection.
Sources: AInvest, Analytics Insight, Moneycontrol