Budget 2026: No Major Relief For Crypto Traders, Taxes Remain Unchanged

In the Union Budget 2026, the government maintained crypto taxation unchanged with the current regulations for traders and investors in place. No major changes were introduced for the crypto sector.

Crypto Taxation Unchanged, Penalties Introduced for Exchanges

Crypto taxes remain unchanged in Budget 2026, with gains from trading taxed at a flat rate of 30 per cent and 1 per cent TDS on transactions. Also, crypto losses cannot be offset by other sources of income.

With no changes to the tax framework for traders, the Budget 2026 instead focuses on strengthening compliance for exchanges and other reporting entities. According to Section 509 of the Income Tax Act of 2025, crypto exchanges must provide statements of transactions involving cryptocurrency assets within the allotted time.

A new penalty structure has been proposed that imposes fines of Rs 200 per day for non-compliance with the deadline for submitting the declaration and up to Rs 50,000 for providing incorrect information. These proposed amendments will take effect from 1st April 2026.

Experts Weigh In on Crypto and Compliance in Budget 2026

Crypto experts weighed in on the unchanged crypto tax rules and the newly proposed penalties for reporting non-compliance.

Edul Patel, CEO of Mudrex, said that Budget 2026 keeps crypto taxation unchanged, and the industry had hoped for reforms to boost market participation and liquidity. He added that rationalising transaction taxes and allowing loss offsets could strengthen India’s competitiveness.

On Penalty, Patel said,“The new compliance standards for crypto highlight a larger policy shift to strengthen compliance and transparency in India’s crypto space. Long-term industry growth won’t come from innovation alone, but from building trust, consistency, and regulatory clarity, and these measures are a step in that direction.”

Ashish Singhal, Co-founder of CoinSwitch, said the 1 per cent TDS, inability to offset losses, and 30 per cent flat capital gains tax create an uneven environment for domestic participation, potentially driving capital offshore. He welcomed the new penalty provisions as a positive step to strengthen compliance in the crypto industry.

Avinash Shekhar, Co-founder and CEO of Pi42, said, “India leads global digital asset adoption, but the lack of clear regulatory direction continues to limit the sector’s ability to scale responsibly.” He added that thoughtful regulation and onshore innovation could help build a mature digital asset ecosystem that benefits investors, businesses, and the broader economy.