A messy patchwork of TDS, GST, and missing PA licences leaves Indian crypto users guessing.

India's crypto policy in 2026 is a contradiction: 30% tax on gains, 1% TDS on every transaction, and no formal recognition as a financial asset. Exchanges operate under PA licence ambiguity. Users pay tax like it's an investment but are told it's not legal tender. The regulatory clarity everyone has been waiting for hasn't arrived. The practical advice for an Indian crypto user today: maintain immaculate transaction records, file taxes correctly, and don't expect regulatory clarity in 2026. Some exchanges are pulling out, some are doubling down. The chance of a coherent framework in the next 18 months is low — political consensus on the topic doesn't exist.