Union Budget 2026: Big action for non-compliance in reporting of crypto transactions

Bengaluru: The Union Budget 2026 presented on Sunday stressed the importance of accurate and timely reporting of crypto-asset transactions. 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 in such statement, the Budget has proposed to introduce a penalty provision.

"Penalty of Rs 200 per day for non-furnishing of statement and Rs 50,000 for furnishing inaccurate particulars and failure to correct such inaccuracy is proposed to be levied," the Budget mentioned.

Raj Karkara, COO, ZebPay, said, “By introducing well-defined measures to address non-compliance, the Budget strengthens accountability while bringing digital asset reporting closer in line with established financial standards."

Crypto exchanges have welcomed this clarity as it enables exchanges and market participants to build compliance frameworks with greater confidence and operational certainty. "Previously, the Financial Intelligence Unit-India (FIU-IND) updated its AML and CFT guidelines in January 2026, classifying crypto exchanges and VDA service providers as Reporting Entities under the PMLA. Taken together, these measures reflect a cohesive regulatory direction that builds trust, enhances accountability, and supports the long-term, responsible growth of the digital asset industry in India," he said.

The proposed penalties for non-disclosure and misreporting of crypto assets reflect a broader policy shift towards strengthening compliance and transparency in India’s digital asset ecosystem, building on the recently updated FIU-IND guidelines for exchanges, Edul Patel, CEO of Mudrex, said.

"By creating clearer accountability, these measures bring crypto transactions closer to mainstream financial reporting standards. Long-term growth in the sector depends not only on innovation, but also on trust, consistency, and regulatory clarity, and measures like these move the industry in the right direction," Patel added.