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Budget 2026: Will Crypto Investors Get Tax Relief? What are Investors' Expectations from the Budget?
Siddhi Jain | January 31, 2026 5:15 PM CST

In recent times, there has been a surge in interest among Indian investors in cryptocurrencies and other Virtual Digital Assets (VDAs). As a result, crypto investors have high expectations from this budget...

Budget 2026 Crypto Expectations: In recent times, there has been a rapid increase in interest among Indian investors in cryptocurrencies and other Virtual Digital Assets (VDAs). However, investing in this sector is not easy due to the heavy tax burden. The current system has left many investors confused.

With just one day left before the presentation of Budget 2026, the expectations of people associated with the crypto industry, tax experts, and investors have risen again. Everyone is watching to see whether the government will make any major decisions regarding taxes and regulations or if the existing system will continue. Therefore, crypto investors have many expectations from this budget. Let's learn more about this...

Investors' Expectations from Budget 2026

A flat tax rate of 30 percent is levied on income from Virtual Digital Assets. No deductions are allowed except for the cost of acquisition. Additionally, a 1 percent TDS (Tax Deducted at Source) is deducted on every transaction, which provides the government with a complete record of investment activities. However, these strict rules place an additional burden on investors.

The continuous TDS deduction often ties up the funds used for trading, causing more problems for small investors. This has led many to turn to foreign exchanges or informal platforms where the rules are more lenient.

This is also impacting the country's domestic crypto market. In this situation, investors are now hoping for changes and relief in this tax system.

Budget 2022 Changed the Direction of Crypto Taxation

The central government started focusing on digital assets a few years ago. The rapid increase in transactions was considered the main reason for this. In the Union Budget 2022, the Finance Minister stated that the scope and trading volume of cryptocurrencies and other digital assets had grown to such an extent that it had become necessary to create a separate tax regime for them.

This made it clear that the government now considers these assets to be a part of the formal financial system and intends to bring them under the tax net.


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