India keep 30% crypto tax and 1% TDS for budget 2026 — Traders no get relief
India Budget 2026 still dey use di same crypto tax setup: flat 30% tax on money wey you make from transferring virtual digital assets (VDAs) and 1% TDS on transfers wey pass di threshold. Government reject wetin industry dey beg for tax relief, dem talk say dem dey try hold money matter tight and to stop illegal activities. Di rules still get strict compliance — no set-off or carry-forward of VDA losses and dem go punish wrong reporting — wey go make compliance costs high for exchanges and traders. Market people warn say di 1% TDS go reduce onshore liquidity and fit make trading volumes move offshore, wey go slow down short-term trading, margin strategies and speculative moves. Analysts see dis decision as putting revenue and oversight above incentives for homegrown crypto innovation. Traders suppose expect more wahala for Indian exchanges, higher effective tax burdens, and possible shift of liquidity to offshore venues.
Bearish
If dem keep 30% high tax pon VDA gains plus 1% TDS, e go raise trading cost steady and reduce onshore liquidity. If dem no allow loss set-off or carry-forward, e go increase tax load for active traders and kill many trading strategies (tax-loss harvesting, short-term margin plays). The TDS system just remove capital from domestic trading pools mechanically, e fit push volumes to offshore venues wey no get or get less withholding. Short-term, expect lower domestic volumes, wider onshore spreads, and less speculative activity—bad for price momentum and exchange revenue. Long-term, steady high taxation and compliance friction fit depress domestic market participation and innovation, make offshore liquidity pools stronger and limit onshore demand — keep dey put bearish pressure unless dem ease policy or add supportive measures.