India crypto budget 2026: Bitcoin traders to face a $545 penalty for lapse
India's 2026 budget keeps existing crypto taxes but introduces penalties up to $545 for reporting lapses.Summary
India's Union Budget for 2026-27 maintains the existing 30% tax on crypto gains and the 1% Tax Deducted at Source (TDS) framework, disappointing industry hopes for relief. However, the Finance Bill, 2026, introduces new compliance measures effective April 1, 2026, targeting reporting entities under Section 509 of the Income-tax Act. Failure to file required crypto transaction statements will incur a daily penalty of approximately $2.20, while filing incorrect information or failing to rectify errors will result in a flat penalty of about $545 (₹50,000). These amendments, detailed in Section 446, aim to strengthen reporting compliance, even as the broader tax structure remains unchanged, which industry participants argue continues to hinder liquidity.
(Source：CoinDesk)