PANews reported on February 2nd that, according to CoinDesk, India's 2026-27 federal budget maintains the existing 30% tax on cryptocurrency gains and 1% withholding tax, disappointing industry groups that had previously sought tax cuts.

Instead of adjusting tax rates, the government has proposed new penalties starting April 1, 2026, for entities that fail to properly declare crypto asset transactions in accordance with Section 509 of the Income Tax Act. Failure to submit the required reports will incur a daily fine of 200 rupees (approximately US$2.20) until the default ends. A fixed fine of 50,000 rupees (approximately US$545) will be imposed if the submitted information is incorrect or if errors are not corrected after being discovered. Officials stated that this move aims to strengthen compliance, but market participants warn that it will continue to cause friction for traders.