India's 2026 Budget Holds Crypto Tax & TDS Rates, Introduces New Penalty for Non-Compliance

The Indian government's Interim Budget for 2026 has maintained the existing tax framework for cryptocurrency transactions. Key provisions, including the 30% tax on virtual digital asset (VDA) profits and the 1% Tax Deducted at Source (TDS) on transfers, remain unchanged. A significant new addition is the introduction of a penalty of approximately $545 (₹45,000) for failures in filing statements related to crypto transactions. This move signals regulatory continuity rather than reform, keeping the tax burden on crypto investors steady while enforcing stricter compliance measures. The market awaits the full budget later in the year for any potential policy revisions.