Crypto paradise

The Union Budget 2025-26 did not announce any major relief for cryptocurrency investors, leaving the 30% tax on crypto gains and 1% TDS on transactions unchanged. However, Finance Minister Nirmala Sitharaman proposed an amendment to Income Tax Act, requiring a prescribed reporting entity to disclose transaction details related to virtual digital assets (VDAs).

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Prior to the budget announcement, the cryptocurrency industry had expressed hopes for tax reforms, including reducing the TDS rate from 1% to 0.01%, allowing the offsetting of losses against gains, and lowering the overall tax rate on VDAs. Industry leaders believed these changes could stimulate growth, improve compliance

However, the budget did not address these expectations, leaving the current tax structure intact.

This amendment aims to increase transparency in the crypto space, but the lack of relief for investors is disappointing.

Interesting to see the Finance Minister propose more reporting requirements for VDAs, but no change to the existing tax rates. Transparency is important, but it remains to be seen how this will impact the crypto ecosystem.