India’s Budget 2026 keeps crypto taxes, TDS unchanged, adds $545 penalty for lapses

The Finance Bill introduced daily fines and a flat penalty for incorrect crypto disclosures while leaving the existing tax and TDS framework untouched. What to know : India’s 2026-27 Union Budget leaves the existing 30 percent tax on crypto gains and 1 percent tax deducted at source unchanged, disappointing industry groups that had sought relief. Instead of altering rates, the government has proposed new penalties from April 1, 2026, for entities that fail to properly report crypto-asset transactions under Section 509 of the Income-tax Act. Reporting lapses would draw a ₹200-per-day fine for non-filing and a flat ₹50,000 penalty for incorrect or uncorrected information, a move officials say is meant to strengthen compliance even as market participants warn of persistent frictions for traders.