e-commerce
Ahead of budget 2026, KoinX highlights crypto tax disconnect
MUMBAI: As the Union Budget 2026 looms, India’s crypto tax regime is back in the spotlight, and not in a flattering way. A new report by KoinX suggests that for many investors, the taxman walked away with more cheer than their portfolios did.
According to India’s Crypto Tax Story 2025, nearly half of Indian crypto investors ended FY25 in the red. Yet many still paid taxes. The report draws on anonymised data from close to seven lakh Indian users and paints a picture of a system that taxes activity rather than outcomes.
At the heart of the debate is the 1 per cent tax deducted at source. While the levy has improved transaction reporting, KoinX argues it has also frozen capital by skimming every trade, profit or loss notwithstanding. The result is a growing dependence on refunds and a steady squeeze on liquidity.
In FY25 alone, total TDS collected across the crypto ecosystem stood at Rs 511.83 crore. KoinX users contributed Rs 130.16 crore of this amount, but their actual tax liability was only Rs 91.64 crore. That leaves an estimated Rs 38.52 crore locked up as excess deductions.
The burden is unevenly shared. Less than 5 per cent of traders accounted for 87 percent of total TDS collections. Thin margins mean even high volume traders often overpay upfront, while smaller investors feel the pinch in proportion.
KoinX founder and CEO Punit Agarwal said the solution is not scrapping TDS but resizing it. He advocates a uniform cut to 0.1 percent, arguing it would free trapped capital, reduce the drift to offshore platforms and keep compliance intact.
The bigger fault line, however, lies in capital gains taxation. The report shows a near perfect split in outcomes. Around 51 per cent of users posted net gains, while 49 percent booked net losses. Yet taxable gains ballooned to Rs 3,722 crore because losses cannot be set off.
As a result, investors who collectively lost Rs 1,178 crore still paid tax on Rs 180 crore of gains. In plain terms, many paid capital gains tax without any capital gains to show for it.
Agarwal calls this a break from first principles. Across asset classes, no net gain means no capital gains tax. Treating crypto differently, he warns, distorts behaviour and risks driving both traders and liquidity offshore.
As policymakers fine tune the Budget 2026 numbers, KoinX hopes its data offers a timely nudge. The message is simple. A tax system that moves with outcomes, not just volumes, could make crypto less taxing for everyone.
e-commerce
Flipkart rolls out 105 per cent bonus for 20,000 employees
Strong FY25 performance drives payouts even as layoffs and shifts unfold.
MUMBAI: In a year where belts were tightened and rewards loosened, Flipkart seems to be playing both offence and defence trimming roles on one hand while handing out a generous 105 per cent bonus on the other. The Walmart owned e commerce major has rolled out a 105 per cent bonus payout for 2025, covering nearly 20,000 employees, signalling a year of steady operational momentum even as the company navigates restructuring pressures. The payout, communicated internally by chief human resources officer Seema Nair, is tied to performance across key metrics including growth, operational efficiency, financial outcomes and people indicators, a combination that suggests the company is inching closer to its long stated goal of sustainable profitability.
Employees at SD level and below are set to receive their bonuses in March, while payouts for senior leadership, including vice presidents and senior vice presidents, will follow after the close of the performance cycle. The elevated 105 per cent multiplier stands out in a sector where cautious payouts have increasingly become the norm, pointing to what appears to be a relatively strong internal scorecard for FY25.
Yet, the announcement arrives with a noticeable contrast. Earlier this year, Flipkart reduced its workforce by around 300 roles as part of its annual performance review process. While officially framed as performance driven, the juxtaposition of layoffs alongside above target bonuses reflects a more nuanced balancing act, one that prioritises cost discipline while continuing to reward and retain high performing talent.
This dual approach is becoming increasingly common across the technology and e commerce landscape, where companies are navigating an uneven hiring environment while under pressure to deliver profitability. Rewarding top contributors, even amid selective workforce reductions, allows firms to maintain morale and retain critical talent without losing sight of financial prudence.
At the same time, Flipkart is also undergoing leadership shifts that hint at a broader strategic recalibration. Nishant Verman has been appointed senior vice president for corporate development and partnerships, while group chief financial officer Sriram Venkataraman is set to step down. Ravi Iyer will take on expanded responsibilities within the finance function, marking a reshuffle at the top as the company gears up for its next phase.
These changes come amid reports that Flipkart is planning to shift its holding structure back to India, a move widely interpreted as groundwork for a potential public listing. While timelines remain fluid, the combination of stronger financial discipline, leadership restructuring and employee incentivisation suggests a company preparing itself for greater scrutiny and scale.
For employees, the 105 per cent payout offers a welcome boost in what has otherwise been a period of adjustment. For Flipkart, it is a signal that even as it cuts where necessary, it is willing to spend where it counts. In the high stakes game of growth versus profitability, the company appears to be hedging its bets carefully, rewarding performance while reshaping itself for what could be its most defining chapter yet.
