India's 2026 budget: Data shows cryptocurrency traders paid taxes even when incurring losses

According to CoinWorld, India's cryptocurrency tax regime is under scrutiny as new data shows that nearly half of investors experienced net losses in the 2025 fiscal year. However, due to regulations prohibiting loss offsets, many still have to pay taxes. A report analyzing nearly 700,000 users found that 49.09% reported net capital losses, yet these users still had to pay taxes on gains totaling 180 million rupees. The 1% withholding tax collected 511.83 million rupees, improving compliance but also locking up funds; over 30% of users paid excessive withholding tax and are due refunds. As the 2026 budget approaches, there are growing calls within the industry to reform the withholding tax rate and loss offset rules.