Despite the increasing popularity of cryptocurrency and digital assets in India, there was no positive change in the Union Finance 2025-26 about the region. Finance Minister Nirmala Sitharaman introduced on 1 February 2025 Finances 2025 Once again proved to be disappointing for Cryptocurrency investors and community. For the past few years, there is an atmosphere of disappointment in the Indian Crypto Community due to the taxes and rules imposed on cryptocurrency and this time the government did not give any relief for cryptocurrency.
Increased increasing challenges in Crypto sector
The Union Finances introduced in 2022 imposed 30% tax on cryptocurrency, which was much higher than other investments. In addition, 1% TDS (Tax deducted at Supply) was also implemented on crypto transactions. Due to these provisions, investors faced heavy problems, especially for investors who have large -scale transactions. Not only this, the benefits of crypto were also banned from loss of deficit, which made it even more difficult to reduce the loss for crypto traders.
All these stringent rules are reducing the trust of investors towards cryptocurrency and lack of liquidity in the market is arising. Also, the Crypto Trading Volume is also seen to have a decline. In such a situation, the Crypto Community had been expecting the government for a long time that some relief will be given about the region in Union Finance 2025.
Crypto community expectations and demands
One of the main demands of Crypto Community was to reduce 1% TDS applied to crypto transactions under section 194S to 0.01%. The community believes that if this is done, investors will get encouragement to invest and the trading volume will increase. Apart from this, it was also suggested to increase the limit of crypto transactions from Rs 50,000 to Rs 5 lakh under this section, so that investors could get more flexibility.
Along with this, the Crypto Community also urged the Government of India to re -consider 30% tax imposed on Crypto Income. The community believed that if the tax structure is made simple and flexible, it would increase the trust of investors in the Crypto sector and also increase activity in the market.
Conclusion
Even though the Government of India has given relief of up to Rs 12 lakh for direct tax in the Union Budget 2025, but Union Finances 2024 Like the government did not respond to issues related to cryptocurrency and virtual digital assets (VDA). This leads to an atmosphere of disappointment in the Crypto Community, as there was a hope of any relief or improvement about the region. Now, it has to be seen whether the government takes any new initiative about the crypto sector in future. At present, no expectations about the Crypto sector have been met since the budget 2025.
