- The Union Budget 2026-27 didn’t reduce or change the existing crypto tax rates.
- No new deductions or ways to write off losses were added, which many traders wanted.
- Finance Bill 2026 imposes much stricter rules on crypto assets and exchanges.
Despite expectations from parts of the Indian crypto ecosystem for tax cuts, the Union Budget 2026-27 didn’t reduce or change the existing crypto tax rates. This means the following tax measures remain unchanged:
- Flat 30% tax still applies to crypto profits.
- 1% Tax Deducted at Source (TDS) mechanism for transactions above set thresholds persists.
- No new deductions or ways to write off losses were added, which many traders wanted.
In short, the government doubled down on enforcing tax rules instead of offering breaks or encouragement.
That being said, the budget’s new Finance Bill for 2026 imposes much stricter rules on crypto assets and exchanges, set to take effect from April 1, 2026.
The official definition of virtual digital assets (VDAs) has been clarified to specifically include cryptocurrencies that run on blockchain technology. In addition, crypto trading platforms and wallet services must now report detailed user transaction information to the tax department under the new Section 509 rules.
To enforce this mandate, companies that don’t submit the required cryptocurrency transaction statements by the deadline will incur a daily penalty of ₹200 (roughly $2.2), effective April 1, 2026. An additional flat penalty of ₹50,000 (about $546) may be applied if the information they provide is wrong and they don’t fix it.
While the fines target exchanges and platforms, investors are indirectly affected because these companies must report all user trades correctly or pay the penalty.
India’s Persistent Taxation
The country taxes crypto heavily without offering incentives for the crypto industry. A flat 30% tax on crypto profits has been in place since 2022, and crypto losses can’t be used to reduce tax bills from other gains. As a result, this makes trading more expensive.
The rules for the new tax system starting in April come from the Finance Act of 2025. It gave tax authorities more power to track and enforce taxes on digital assets.
On the other hand, India continues to be the number one country in cryptocurrency adoption, with 119 million crypto users in 2025. By the end of 2026, this number is expected to reach 123 million.
Related: India Budget 2026 Crypto Taxation Focuses on Clarity Over Higher Levies
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