Most Indian Crypto Investors Favor Stock-Like Tax Rules
- 61% of Indian crypto investors want stock or mutual fund-like taxes on digital assets.
- Nearly 90% understand the 30% tax and 1% TDS rules, yet 66% still call the regime unfair.
- 59% cut back on crypto activity due to taxes, while 80% say clear rules are essential.
A CoinSwitch survey released ahead of India’s February 1 Union Budget shows calls for crypto tax reform. The survey found that 61% of Indian crypto investors want crypto taxed like stocks or mutual funds.
Another 17% supported a separate tax framework for crypto, while 22% chose other preferences. In addition, the nationwide poll shows awareness of the Virtual Digital Assets (VDAs) rules, alongside dissatisfaction with the current approach.
CoinSwitch survey highlights demand for equity-style crypto tax
The CoinSwitch survey indicates many investors want crypto brought into India’s mainstream financial taxation framework. Respondents most often backed tax treatment aligned with equities and mutual funds, rather than a standalone VDA structure.
Ashish Singhal, Co-founder of CoinSwitch, framed the demand as rationalization, not relief. He said respondents do not seek exemptions and want a fairer policy. He said respondents want “rationalisation,” including lower rates, loss set-off provisions, reduced transaction deductions, and clearer rules aligned with established markets.
The responses show investors rank both taxation and regulation as key Budget issues. The survey presents them as linked priorities for policy action. However, opinion splits on how to structure the rules. About 17% want a separate crypto tax regime, indicating support for tailored treatment.
Investors also signalled broader policy preferences beyond taxation mechanics. In the survey, 51% said India should encourage crypto as a new asset class, while 30% backed cautious regulation. Only 7% favoured active discouragement.
India’s crypto tax rules spark unfairness concerns among investors
The survey reported high awareness of India’s current crypto tax provisions. Nearly 90% said they understand core rules, including the headline rates and key limitations.
Those provisions include a 30% tax on gains, restrictions on loss set-off and carry-forward, and a 1% TDS on transactions. Respondents cited familiarity with each element as part of their tax knowledge. Still, most investors described the framework as unbalanced. Sixty-six percent said the current crypto tax system is unfair, despite widespread awareness of how it works.
Singhal said the findings indicate investors remain informed and willing to comply. He said they want a fair and predictable framework that aligns with established financial markets and reflects market realities.
Taxation also appears to shape behaviour in the market. About 59% said they reduced crypto investing or trading because of the prevailing rules, pointing to potential impacts on trading volumes and liquidity.
However, not all investors pulled back. The survey found 17% increased participation. Another 16% said the tax rules did not affect activity. Meanwhile, 8% reported other impacts, showing mixed responses across investor groups.
Related: India Crypto Tax: How Compliance Can Unlock ₹66,000 Crore More
Regulatory clarity on VDAs influences investor activity in India
Beyond taxation, respondents stressed the need for clearer crypto regulation in India. Over 80% said clear rules matter. In addition, 60% rated regulatory clarity as extremely important for investor confidence.
Respondents also suggested that tax reform alone will not build long-term trust. Many investors linked market participation to predictable rules for VDAs, alongside clear compliance expectations. Information channels emerged as a theme in the poll. Crypto platforms and exchanges served as the primary source for updates at 30%, followed by news media at 27% and social media at 25%.
In addition, 18% relied on other sources for guidance on taxes and regulations. That mix highlights the importance of consistent and authoritative communication, especially when rules affect transaction flows.
Singhal said clearer regulation could support compliant onshore participation and a more transparent digital asset ecosystem. He also said investors want a fair and predictable framework as policy discussions continue.
As the Union Budget approaches, the CoinSwitch survey suggests investors will watch for signs of tax rationalisation and regulatory clarity. Any policy shift could influence participation patterns and the direction of India’s VDA market.
