Rajya Sabha MP Raghav Chadha, known for addressing issues related to economic policy, taxation, and consumer protection, has urged the government to legalize virtual digital assets (VDAs) in India. This move could generate ₹15,000 to ₹20,000 crore in additional annual tax revenue.
Raghav Chadha spoke on Crypto Regulation
The AAP MP’s effort to legalize digital assets like cryptocurrencies has sparked a renewed discussion on whether India’s crypto policy is pushing capital and innovation out of the country instead of providing a proper framework for it.
During the Budget discussion in the upper house of Parliament, Chadha argued that India should recognize VDAs—including cryptocurrencies, stablecoins, and tokenized real-world assets—as a legitimate asset class. He warned against allowing the ecosystem to gradually move offshore.
Union budget 2026 penalize for failing crypto asset transactions reporting
Currently, there is a 30% flat tax on capital gains from VDAs, which has been in effect since April 1, 2022. Additionally, a 1% tax deducted at source (TDS) on every trade started on July 1, 2022. The Union Budget 2026 proposed more penalties for failing to report or for inaccurate reporting of crypto-asset transactions. Under this proposal, a penalty of ₹200 per day would apply for delays in filing statements. A flat ₹50,000 fine would be imposed for inaccurate reporting or for not correcting errors. These provisions will begin on April 1, 2026.
Despite this heavy taxation, the sector still operates without formal legal recognition, a dedicated licensing system, or a strong investor protection framework.
The comments of Raghav Chadha reflect concerns from the industry. Leaders in the sector say his statements mirror issues they have raised for years. Sumit Gupta, co-founder of CoinDCX, described Chadha’s intervention as “both relevant and timely.” He noted that global regulators have increasingly recognized the economic value of digital assets and have chosen to regulate rather than suppress them.
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