India's 2026 Budget Keeps Cryptocurrency Tax and TDS Unchanged, Adds New Penalty for Violations

Techub News reported, according to CoinDesk, India's federal budget for the 2026-27 fiscal year maintained the existing 30% tax on cryptocurrency gains and 1% tax deducted at source (TDS), disappointing industry groups that had sought tax reductions. Instead of adjusting the tax rates, the government proposed new penalties, effective from April 1, 2026, for entities failing to correctly report crypto asset transactions as per Section 509 of the Income Tax Act. A penalty of 200 rupees (approximately $2.2) per day will be imposed for failing to submit the required statements until the default is rectified. A separate fixed penalty of 50,000 rupees (approximately $545) will be levied if the information submitted is incorrect or not corrected after being found erroneous. Officials stated this move aims to enhance compliance, but market participants warned it would continue to create friction for traders.