India's Crypto and Capital Markets Seek Tax Reforms Ahead of Budget 2026

Ahead of India's Union Budget 2026, the crypto industry urges a review of the 30% tax on crypto gains and a reduction of the 1% tax deducted at source (TDS) on transactions to boost domestic trading and investor confidence. Industry leaders propose linking crypto taxes to income slabs and allowing loss offsets. Separately, market participants call for easing capital market taxes, including raising the long-term capital gains exemption to Rs 2 lakh and avoiding increases in transaction taxes like the Securities Transaction Tax (STT). These measures aim to enhance liquidity, compliance, and long-term investment.