before the announcement of India's federal budget in February, the Indian cryptocurrency industry is once again calling for tax reform. They believe that with the tightening of regulatory compliance requirements, the current tax framework is hindering domestic cryptocurrency activities.

India's current cryptocurrency tax framework was introduced in 2022, imposing a uniform tax rate of 30% on cryptocurrency gains and withholding a 1% tax on most transactions (regardless of profit or loss). Currently, trading losses cannot be used to offset gains.

Executives from major domestic exchanges stated that the current tax system, especially the transaction-level taxes and restrictions on loss offsetting, neither reflects the development trends of the global digital asset market nor India's own progress in strengthening regulation and enforcement.

This new round of push comes as policymakers finalize fiscal priorities for the next financial year. The Indian federal budget, expected to be announced on February 1, is widely seen as one of the few ways to achieve meaningful tax adjustments without enacting new laws.