India's 2026 Budget Keeps Crypto Taxes Unchanged, But Adds New Penalties
Despite some experts' expectations, India's 2026 Finance Bill brought no changes to the country's cryptocurrency taxation. The tax rates and the mechanism of tax deducted at source (TDS) remained at the same level.
However, the document introduces new liability measures for incorrect crypto-related disclosures. Now, a penalty of 500 rupees (about $6.5) will be charged for each day of delay in filing the required reports. Additionally, a flat penalty of 40,000 rupees (around $545) is envisaged for any errors or omissions in declaring crypto incomes and transactions.
Thus, the Indian authorities are signaling that they intend to closely monitor compliance with cryptocurrency tax legislation, despite the absence of cardinal changes in the tax rates themselves.
Expert Assessment
Keeping the main cryptocurrency taxes unchanged can be considered a reasonable and balanced step by the Indian government. The country has already introduced a 30% tax on crypto incomes and a 1% TDS, which is one of the toughest tax regimes in the world.
The introduction of new penalties indicates the authorities' desire to ensure more accurate and timely fulfillment of tax obligations by cryptocurrency market participants. This may slightly complicate business operations for some players, but overall it benefits the development of a legal and transparent cryptocurrency sector in India.