India Maintains Crypto Tax Framework in 2026 Budget with New Penalties

The recently unveiled Finance Bill for 2026 has maintained the current taxation and TDS structure for cryptocurrency, opting instead to implement daily fines and a fixed penalty for inaccuracies in crypto disclosures. This decision signals the government's intention to keep the existing regulatory framework intact while enhancing compliance measures.

The newly introduced penalties for lapses in crypto-related disclosures will amount to $545, aiming to deter misinformation and encourage accurate reporting among cryptocurrency holders and traders. Despite calls from the industry for more clarity and adjustments in tax regulations, the budget reflects a steady approach towards the evolving digital asset space.