India’s upcoming 2026–27 Union Budget has brought crypto taxation back into focus, with CoinDCX CEO Sumit Gupta asking the government to revisit the current framework for digital assets. In a post on X, Gupta described Budget 2026 as a “reset opportunity” that could help India move beyond being a major crypto adopter and establish itself as a global crypto hub.
Three tax changes sit at the center of the proposal
Gupta’s first recommendation is a sharp cut in the crypto TDS rate from 1% to 0.01% across all exchanges. His argument is that a lower deduction rate would keep more trading activity on domestic platforms and improve visibility for regulators by reducing the incentive to shift volume elsewhere.
The second proposal targets capital gains tax. India currently applies a flat 30% tax rate on crypto gains, regardless of the investor’s income level. Gupta wants that structure aligned with income tax slabs instead, saying the present system applies the same rate to low earners and top earners alike.
The third suggested reform is loss set-off. CoinDCX argues that allowing crypto losses to be offset against other income is common in many markets, and the absence of such treatment leaves Indian investors at a disadvantage compared with participants in other asset classes.
CoinDCX points to user, tax, and reserve data
To support a data-led policy discussion, CoinDCX co-founder Neeraj Khandelwal shared the exchange’s transparency report for December 2025. According to the report, the platform now serves more than 21 million users, has paid ₹13.10 crore in TDS, and holds $502.63 million in reserves under proof of reserves.
The company also said its Crypto Investor Protection Fund stands at ₹55.54 crore. Those figures were presented as evidence that domestic exchanges are already operating at scale, contributing tax revenue, and maintaining visible reserve disclosures.
Budget 2026 is being framed as a policy opening
The report notes that India already ranks first on the crypto adoption index. It also says participation in crypto SIPs rose by nearly 60% in 2025. Supporters of reform argue that relatively basic tax changes in the 2026 Budget could reduce grey-market activity and improve India’s standing as a center for digital asset innovation.
For now, the debate is centered on tax design rather than new headline restrictions. CoinDCX’s message is direct: change the structure, and the market may look very different.