India’s Union Budget 2026-27 has left crypto taxation unaltered, keeping the 30% charge and 1% TDS intact. Finance Minister Nirmala Sitharaman delivered the budget address without mentioning digital assets.
Cryptocurrencies and virtual digital assets were not mentioned in the budget speech. As a result, Sections 115BBH and 194S of the Income Tax Act will continue to apply as earlier.
These provisions tax VDA gains at 30% and impose a 1% tax deducted at the source on transactions.
Finance minister has focused on tightening compliance measures rather than changing the tax structure itself. The budget has applied new penalty provisions under Section 509 of the Income-tax Act, 2025.
These penalties, which go into effect on April 1, 2026, target situations in which statements pertaining to cryptocurrency are either not filed at all or are filed incorrectly.
The proposed penalties include ₹200 per day for reporting delays. A ₹50,000 fine applies for inaccurate disclosures or failure to correct errors.
As per an earlier newspaper report, India’s FIU (Financial Intelligence Unit) has tightened crypto rules, mandating live selfies, geo-tagging and bank verification through test transactions.
The measures apply to crypto exchanges and service providers to strengthen KYC and monitoring.
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