In Budget 2026, the Indian government reaffirmed its commitment to a stable and transparent crypto industry through reinforced regulatory and tax frameworks. The Union Budget 2026 prioritizes the formalization of the sector, focusing on robust compliance and sophisticated tracking. This approach provides a clear roadmap for investors, ensuring that the industry grows within a secure and monitored framework.
Here are the key highlights and opportunities from the Budget 2026 framework:
Consistency in Tax Policy
The government has maintained a consistent tax structure, allowing investors to plan their long-term strategies without the risk of sudden policy shifts:
- Structured 30% Tax: The 30% flat tax on Virtual Digital Asset (VDA) profits remains in place, providing a predictable tax environment for high-gain assets.
- Simplified Cost Accounting: By focusing exclusively on the “cost of acquisition” for deductions, the tax filing process remains straightforward for the average investor.
- Clear Profit Realization: The current “no loss set-off” rule encourages a more disciplined and research-driven approach to individual asset investments.
Advanced Transparency (TDS Provisions)
The 1% TDS (Tax Deducted at Source) continues to serve as a bridge of trust between the investor and the government, applies from previous years to Budget 2026:
- Institutional Accountability: The 1% TDS ensures that every transaction is recorded, significantly reducing the risk of fraudulent activities.
- Digital Integrity: Starting April 1, 2026, the use of metadata and application logs for verification will enhance the credibility of the industry, making it harder for “bad actors” to operate and protecting legitimate investors.
The Rise of “Schedule VDA”: Streamlined Reporting
The formalization of Schedule VDA in Income Tax Returns (ITR) is a major step toward mainstream financial integration:
- Ease of Disclosure: Having a dedicated section for crypto makes it easier for citizens to report their holdings accurately and stay compliant.
- AI-Powered Accuracy: The use of AI platforms for cross-verification ensures that tax filings are precise, minimizing the chances of manual errors or future legal notices for investors.
Expanding the Horizon: Classification Clarity
The Budget 2026 has significantly refined the definition of Virtual Digital Assets (VDAs), providing much-needed legal clarity for emerging technologies:
- Inclusive Scope: The refined definitions now clearly encompass Stablecoins, NFTs, and DeFi tokens. This clarity encourages innovation by letting developers know exactly where their projects stand legally.
A Listening Government (Progress in View)
While some industry requests are still under consideration, the Budget 2026 discussions showed an increasingly engaged government:
- Ongoing Dialogue: Proposals for TDS reduction (from 1% to 0.01%) and loss carry-forward benefits have been officially noted. This indicates that the government is actively listening to the industry’s needs as it works toward a balanced fiscal policy in the future.
- As of January 2026, SunCrypto is a fully FIU-IND registered Virtual Digital Asset (VDA) service provider. This means they are legally required to follow the guidelines set by the Ministry of Finance to prevent money laundering and protect Indian investors.
Disclaimer: Crypto products & NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.