India recorded cryptocurrency transactions worth ₹51,000 crore in the financial year 2024-25, generating tax revenues of ₹511.8 crore. Despite the surge in volumes, cryptocurrencies and other blockchain-based digital assets remain largely unregulated in the country.
The government continues to monitor the crypto sector primarily through taxation and mandatory disclosures.
Virtual digital assets (VDAs), which include cryptocurrencies and NFTs, are currently taxed but operate without a dedicated regulatory framework.
Ahead of the FY27 Budget, industry leaders have called for clear and consistent regulations, stating that it would unlock innovation and boost investor confidence.
In the Union Budget 2025-26, the government proposed amendments to the Income Tax Act aimed at strengthening oversight of crypto transactions. The changes would require prescribed reporting entities to disclose detailed transaction data related to VDAs.
The move was intended to improve transparency, track compliance, and bring reporting standards in line with evolving market practices.
The proposed amendments also seek to align legal definitions with the realities of the fast-changing crypto ecosystem.
Budget expectations
Key demands from industry stakeholders for the upcoming Budget also include reducing the 1% tax deducted at source (TDS) on crypto transactions to 0.01%, aligning the flat 30% capital gains tax with individual income tax slabs, and allowing losses from crypto trades to be offset against gains.
According to industry experts, these changes could help build a more stable, transparent, and compliant crypto ecosystem in India, while encouraging participation.
Also Read: Budget 2026 expectations: Crypto, startups, healthcare and BFSI seek clarity, stability and tech-led growth
