Budget 2026: Govt proposes ₹200 daily fine for crypto reporting violations

The Finance Bill introduces penalties for delayed or inaccurate crypto transaction reporting, including a ₹200-per-day fine and a ₹50,000 penalty for uncorrected errors

The government has proposed tightening compliance around crypto transactions by introducing penalties for non-reporting and inaccurate disclosure under the Income-tax Act, 2025.

 

As per the proposals in the Union Budget 2026–27, platforms and entities required to report crypto transactions will face a daily penalty for failing to furnish prescribed statements. Inaccurate reporting that is not corrected within the stipulated time will attract a higher, fixed fine.

 

The proposed provisions will come into effect from April 1, 2026.

 

Presenting the Budget in Parliament, Finance Minister Nirmala Sitharaman said the move was aimed at enforcing reporting obligations and creating deterrence against non-compliance.

 

“To ensure compliance with the provisions of section 509 of the Income-tax Act, 2025 and create a deterrence for non-furnishing of statements or for furnishing inaccurate information in respect of crypto assets, it is proposed to introduce a penalty provision,” Sitharaman said.

Penalty framework under the Finance Bill

The Finance Bill specifies a penalty of ₹200 per day for failure to furnish the required statement on crypto transactions.

 

In cases where inaccurate particulars are provided and not corrected within the prescribed time, a penalty of ₹50,000 has been proposed.

 

“Penalty of ₹200 per day for non-furnishing of statement and ₹50,000 for furnishing inaccurate particulars and failure to correct such inaccuracy is proposed to be levied,” the finance minister said.

 

The penalty provisions are linked to section 509 of the Income-tax Act, 2025.

Position under the earlier framework

Under the earlier framework, crypto exchanges and other reporting entities were required to file statements detailing users’ crypto transactions with the Income-tax Department. However, there was no specific penalty prescribed for delayed filings or for the submission of incorrect or incomplete information.