क्रिप्टो उद्योग विकास के लिए बजट 2026 में कर बदलाव चाहता है

For Prelims, remember these key facts: the current Tax Deducted at Source (TDS) on crypto transactions is 1%, and the tax on profits is 30%. Also, note that crypto transactions in India crossed ₹50,000 crore in FY 2024-25. The industry is advocating for loss set-off provisions.

TDS is a tax that is deducted at the source of income. In the context of crypto, a 1% TDS is applied to every transaction. It is important because the crypto industry believes the current TDS rate is restrictive and pushes investors to foreign exchanges.

The industry seeks tax adjustments to prevent capital outflow, promote domestic investment, and improve compliance. Key concerns are the 1% TDS on every transaction and the 30% tax on profits without loss offset provisions. They argue these measures are restrictive.

Loss set-off provisions allow investors to offset losses from one investment against profits from another, reducing their overall tax liability. The crypto industry wants these provisions reviewed because currently, the 30% tax on profits does not allow for loss set-off, which they believe is detrimental to onshore liquidity.

Reducing TDS could incentivize domestic investment and restore onshore liquidity, potentially boosting the Indian crypto market. However, a lower TDS could also reduce tax revenue for the government and potentially increase speculative trading, requiring careful consideration.

Based on available information, reforms might include clear guidelines on the classification of crypto assets, provisions for loss set-off, and a balanced approach to regulation that encourages innovation while protecting investors. The industry also needs a consistent and predictable regulatory environment.

The ₹50,000 crore figure highlights the growing volume of crypto transactions in India, indicating a substantial market presence. This underscores the need for a supportive regulatory framework to manage and benefit from this activity.

Recent developments include the crypto industry's appeal for tax adjustments in the upcoming Budget 2026. The Reserve Bank of India (RBI) has also expressed concerns about the potential risks of cryptocurrencies to financial stability. The introduction of TDS and the 30% tax are also recent developments.

The genesis of cryptocurrency taxation in India can be traced back to the global rise of digital assets. Initially, there was a lack of regulatory clarity, leading to uncertainty about their legal status and tax treatment. The Income Tax Act, 1961, did not explicitly address cryptocurrencies.

As per the topic data, Nischal Shetty, Raj Karkara, and SB Sekar are key personalities in the crypto industry.