Budget proposes penalties for crypto firms over lapses in transaction disclosures
The Union Budget has proposed stricter penalties for crypto platforms that fail to report user transactions accurately, tightening the government’s oversight of digital asset trading.
Under Section 509 of the Income Tax Act, crypto exchanges and intermediaries are required to submit periodic statements detailing crypto-asset transactions to the Income Tax Department (India). While this reporting obligation already existed, enforcement was limited.
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To improve compliance, the government has proposed new penalty provisions effective April 1, 2026. Platforms that fail to file the required statements will face a fine of Rs 200 per day until…
