India Retains 30% Crypto Tax, Introduces New Penalties

Contributing sentiments towards policy:

57% : The introduction of a 30% tax rate on virtual digital assets in the 2022-23 budget led to a notable increase in offshore trading among Indian traders, driving a significant exodus to platforms outside the country.
53% : In its latest budget for 2026-27, India maintained the existing 30% tax on cryptocurrency gains, coupled with a 1% tax deduction at source (TDS).
53% : The unchanged tax rates and the enforcement of penalties have been met with mixed reactions from the industry.
51% : A primary expectation was the rationalisation of the existing tax regime for virtual digital assets, which is currently restrictive and misaligned with broader financial market practices."
49% : India's federal budget for 2026-27 retains the 30% tax on cryptocurrency gains and introduces compliance penalties, effective April 2026, per CoinDesk via PANews.
45% : The unchanged tax framework and new penalties could stifle growth in the cryptocurrency sector, causing concerns among industry participants about compliance costs and market friction.
44% : Under the updated framework starting April 1, 2026, entities failing to declare crypto transactions according to Section 509 of the Income Tax Act will incur a daily fine.
42% : Despite expectations for tax reductions, the government introduced new penalties.
39% : Coincu Research anticipates that India's continued hefty tax on crypto, combined with significant penalties, could spur further trading shifts to locations with more favorable regulations.

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