Budget 2026 Crypto Tax: Will India Finally Unlock Digital Asset Liquidity?

Key Takeaways The upcoming Budget 2026 crypto tax reforms are set to impact various sectors. It’s crucial to stay updated on these changes.

• The Demand: The industry is urging the government to slash the TDS on digital assets from 1% to 0.01% in the upcoming budget.
• The Fairness: Investors are asking for the ability to set off losses against gains, similar to how stock market taxation works.
• The Impact: Lower taxes mean higher volume. This is critical for the liquidity of tokenized real estate assets.
• The Reality: While regulations evolve, Landbitt continues to offer compliant, secure asset ownership through proven legal structures.

A rational tax framework could spark the next boom in Indian digital investment.

The 1% Problem in a Digital Economy

If you have traded crypto or digital assets in India recently, you know the pain. The current 1% Tax Deducted at Source (TDS) on every sell transaction acts like a speed breaker.

It doesn’t just hurt day traders; it hurts the entire ecosystem. It sucks liquidity out of the market.

As we approach February, the Budget 2026 crypto tax discussions are heating up. The Bharat Web3 Association and major Indian exchanges are presenting a unified front to the Finance Ministry. Their request is simple: “Let us breathe.”

At Landbitt, we watch these developments closely. Why? Because favorable tax rules for digital assets directly benefit you, the real estate investor.

What Exactly is the Industry Asking For?

The requests for the Budget 2026 crypto tax framework are not about avoiding tax. They are about rationalizing it.

1. Reduce TDS to 0.01%

Currently, 1% of your transaction value is locked up every time you sell. This kills high-frequency activity. The industry wants this reduced to 0.01%. This would still allow the government to track transactions (their main goal) without draining capital from the market.

2. Allow Loss Set-Off

If you lose ₹100 in one trade and make ₹100 in another, your net profit is zero. In the stock market, you pay no tax. In the current crypto regime, you pay tax on the ₹100 profit and ignore the loss. This is unfair. The industry wants parity with equities.

Why This Matters for Real Estate Tokenization

You might ask, “I am buying land on Landbitt, not Bitcoin. Why do I care?”

You should care because Real World Assets (RWAs) live on the blockchain. When regulations improve for the broader sector, tokenized land becomes more valuable.

Liquidity is King
The main promise of tokenization is that you can sell your land share instantly. You don’t have to wait months for a buyer. However, a high TDS creates friction. If the government approves the Budget 2026 crypto tax reduction, secondary market trading will explode. Buying and selling land tokens will become as smooth as selling HDFC shares.

Regulated Growth in Hubs like Ahmedabad

Clearer tax rules will boost confidence in financial hubs.

Cities like Ahmedabad (home to GIFT City) are already positioning themselves as fintech capitals. A progressive tax policy would flood these markets with domestic institutional capital.

When confidence returns, the first assets to benefit are not the speculative meme coins. The money moves to assets with real value—like land.

Landbitt: Compliant Regardless of the Budget

While we hope for positive news, your safety on Landbitt does not depend on the Finance Minister’s speech.

We use a structure that works today:

• SPV Model: Your land is held by a private company or Trust.
• Polygon Network: Your ownership is recorded transparently.
• Asset-Backed: Unlike crypto, your token value is derived from physical soil, not internet hype.

However, if the Budget 2026 crypto tax reforms pass, it is the cherry on top. It means lower friction and higher net returns for you.

Conclusion: Prepare for the Shift

The Indian government has moved from “banning” to “regulating.” This is progress.

If the tax burden eases in 2026, we expect a massive surge in digital asset adoption. The smart move is to position yourself in high-quality assets before that wave hits.

Stay updated on regulatory changes and explore our compliant land listings on Landbitt today.