India's 2026 Budget maintains cryptocurrency taxation and withholding tax unchanged, with new penalties introduced for violations.

PANews February 2 News, according to CoinDesk, India’s 2026-27 fiscal year federal budget maintains the existing 30% cryptocurrency income tax and 1% withholding tax, disappointing industry groups that had sought tax cuts. The government did not adjust the tax rates but proposed new penalties starting April 1, 2026, for entities that fail to properly report cryptocurrency transactions under Section 509 of the Income Tax Act. Failure to submit the required reports will result in a fine of 200 rupees (approximately $2.2) per day until the default is rectified. If the submitted information is incorrect or not corrected after being discovered, a fixed fine of 50,000 rupees (approximately $545) will be imposed. Officials stated that this move aims to strengthen compliance, but market participants warn that it will continue to cause friction for traders.