India Maintains Stringent Crypto Taxation in Budget 2026
- India’s Finance Minister Nirmala Sitharaman retained the existing crypto tax structure, keeping the Bitcoin and digital asset tax rate at a flat 30% with a 1% TDS.
- The maximum imprisonment for TDS defaults was reduced from seven years to two years, allowing courts to impose monetary penalties instead.
- New penalties were introduced for non-compliance with crypto transaction reporting, including fines of $2.19 per day for late statements and $546 for inaccuracies.
The Indian government has maintained its stringent crypto tax policy in Budget 2026, continuing the framework established in February 2022 that has significantly impacted domestic trading volumes. Despite calls for relief from industry stakeholders, the unchanged tax regime indicates a focus on enforcement and compliance as India engages in international discussions on crypto regulation.
By retaining the current taxation approach, India signals its cautious stance on cryptocurrency regulation while easing some enforcement measures like reducing imprisonment terms for TDS defaults. Source
