As the date of Union Budget 2026 is getting closer, the heartbeats of India’s cryptocurrency investors and digital asset industry are increasing. This sector, which has been facing the brunt of heavy taxes and strict rules for the last few years, is now hopeful that Finance Minister Nirmala Sitharaman can make a big announcement this time. The question people are asking is whether crypto investors will get 30% tax relief in Budget 2026 or will the government’s entire focus be on promoting Digital Rupee i.e. CBDC?
Currently, the world’s strictest tax rules are applicable on cryptocurrencies in India. From the year 2022, 30% flat tax on crypto gains and 1% TDS is being charged on every transaction. The industry says this TDS makes trading expensive and eliminates liquidity. Due to this, a large number of Indian investors have shifted towards offshore and foreign exchanges, due to which billions of dollars of trading volume went out of the country.
Demands of crypto industry
The demands of the crypto industry are clear this time. The exchange and Web3 companies want the 1% TDS to be reduced to 0.01% in Budget 2026, linking the 30% tax to income tax slabs and allowing crypto losses to be offset by profits. Platforms like CoinDCX and ZebPay believe that this will not only increase compliance, but will also enable Indian exchanges to become competitive again.
Government and RBI’s outlook cautious
However, the approach of the government and RBI is still cautious. Policymakers are concerned about the volatility of private cryptocurrencies, money laundering and tracking issues on offshore platforms. This is the reason why the government is rapidly promoting Digital Rupee i.e. CBDC. The RBI-backed digital rupee is being presented as a secure, regulated and reliable option. It is believed that in Budget 2026, additional funding and incentives may be available for pilot projects, technology and use-cases related to CBDC. Overall, Budget 2026 is a mix of hope and uncertainty for crypto investors. All eyes are on Finance Minister Nirmala Sitharaman’s announcement on February 1. Will tax relief give investors a boost or will CBDC take over? The answer to this will be available in the coming days.
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