Budget 2026: Crypto Investment In India Under Scrutiny, Govt To Penalise Inaccurate Reporting Of Crypto Assets

Crypto investment in India: Some new rules were presented for the crypto-related transactions in the Union Budget 2026 by the Finance Minister Nirmala Sitharaman in the Parliament of India. As per new rules, the government has proposed penalties for both non-furnishing and inaccurate submission of information related to the crypto assets. It is for improving the transparency and accountability in the digital asset reporting. Also, it will align crypto transactions more closely with India’s existing financial compliance framework. These rules as proposed will come into effect from 1 April 2026

Penalties for Incorrect Crypto Reporting

In Annexure Part B of the Union Budget 2026 document, in the section related to rationalising the penalty and prosecution, the government has added a new provision for the crypto assets.

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The proposal states:

- A penalty of Rs. 200 per day will be levied for non-furnishing of crypto transaction statements.

- A penalty of Rs. 50,000 will be imposed for furnishing inaccurate information.

These penalties are proposed in compliance with Section 509 of the Income Tax Act, 2025, and these are intended to decrease the incorrect or missing disclosure related to the digital assets.

Industry Reactions to Budget 2026 Crypto Rules

Industry leaders have largely welcomed the move.

The COO of ZebPay, Raj Karkara, said that the budget strengthens accountability and brings crypto reporting closer to established financial standards, helping exchanges and users build complaint systems.

The WazirX founder Nischal Shetty pointed out the concerns that the continuation of 1 per cent TDS and restrictions on loss set-off still affect liquidity and participation in the crypto ecosystem.

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The Head of APAC in Binance, SB Seker, said that the budget maintains the current taxation framework but highlighted the need for a more forward-looking tax structure as the digital asset market evolves. 

The Union Budget 2026 makes sure that the regulation of the crypto assets remains tight in India by introducing penalties for non-compliance and inaccurate reporting. This will improve the transparency and accountability of the crypto traders.