- The rupee crosses ₹96 per dollar, increasing the INR value of USDT holdings.
- 10,000 USDT could rise from ₹9 lakh to ₹10 lakh if the INR moves from ₹90 to ₹100.
- A higher INR value does not mean lower taxes, as India’s VDA tax rules still apply.
Indian crypto traders holding USDT are looking at a potential boost in their INR withdrawals, as the rupee is approaching ₹100 against the US dollar. As the rupee weakens, the same dollar-linked balance is worth more in INR. This gives traders a bigger cash cushion when withdrawing profits, although tax rules remain an important hurdle.
Why a Weaker Rupee Could Help USDT Holders
The Indian rupee has now slipped past ₹96 per dollar, marking its lowest level in the past two months. According to a Reuters report on September 29, 2026, the currency has weakened to ₹96.1450, while USDT is trading around ₹96.08, almost at the dollar’s INR value.
The current weakness in the rupee is beneficial for Indian traders holding USDT. This is mainly because their dollar balance can be converted to more rupees. To be clearer, when the currency is valued at ₹90 per dollar, 10,000 USDT will be worth ₹9 lakh. But when the rupee weakens to ₹96 per dollar, the same amount of USDT will be worth ₹9.6 lakh. If it further falls to ₹100, the USDT conversion will reach ₹10 lakh. Thus, Indian traders get a notable INR cash cushion when they withdraw their dollar-linked gains.
Tax Question Remains
At the same time, India’s tax rules remain a major challenge for traders. The Income Tax Department levies 30% tax on VDA gains and a 1% TDS on certain transfers.
It should be noted that the higher NR value of USDT does not necessarily mean a lower tax bill. The trader will be subject to the same tax rates under the current rules. This means that a weaker rupee can lead to an increased sum in INR, while the tax rate remains unchanged.
For example, the value of 10,000 USDT may go up from ₹9 lakh to ₹10 lakh when the rupee moves from ₹90 to ₹100. But this increase will not reduce the trader’s tax liability. He would still need to pay the applicable tax when converting the USDT balance.
A Bigger Withdrawal Does Not Mean Bigger Crypto Profits
Interestingly, the USDT trader will not make an additional crypto profit just because of the weakening dollar. The change is only because of the INR-USDT exchange rate. If a trader holds 10,000 USDT, the balance remains the same, no matter whether the rupee is at ₹90, ₹96, or ₹100.
The change in the value of INR becomes important when withdrawing the profits. When the rupee is at ₹90, the USDT balance will be converted to ₹9 lakh, and it may increase to ₹10 lakh when the rupee weakens to ₹100. This additional ₹1 lakh is a result of the rupee weakening, rather than a rise in the trader’s USDT holdings.
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Notably, the rupee’s change in value against the USD could be important for traders who keep their crypto profits in USDT instead of converting them immediately into INR. When they continue to hold the stablecoin, its INR conversion amount could rise if the rupee weakens. When they eventually withdraw the amount, they could receive more cash in INR.
This means that Indian traders holding USDT will keep a close eye on the Rupee-USDT gap. They will frequently check the value of the rupee and the USDT-INR conversion rate to book the maximum profit.
Related: India’s $136B Dollar Cushion Isn’t Free: What the FCNR Boom Means for the Rupee and Crypto Traders
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