India Maintains Cryptocurrency Tax Rates in 2026-27 Federal Budget

India's 2026-27 federal budget has retained the existing 30% tax on cryptocurrency gains and a 1% withholding tax, disappointing industry groups that had been advocating for tax reductions. According to ChainCatcher, the government has not altered the tax rates but has proposed new penalties for entities failing to accurately report crypto asset transactions under Section 509 of the Income Tax Act, effective April 1, 2026. Entities that do not submit the required reports will face a daily fine of 200 rupees (approximately $2.2) until the non-compliance ends. Additionally, if the submitted information is incorrect or not corrected after errors are identified, a fixed penalty of 50,000 rupees (approximately $545) will be imposed. Officials state that this measure aims to enhance compliance, though market participants warn it could continue to create friction for traders.