Rs 200 Per Day Fine: India Cracks Down on Missing Crypto Reports Starting 2026

India is taking decisive steps to tighten oversight of its cryptocurrency sector, blending domestic enforcement with international cooperation. India’s Union Budget 2026 has introduced tough new penalties for crypto platforms and reporting entities that fail to submit or accurately file required transaction statements.

Effective from April 1, 2026, non-furnishing of these statements will attract a ₹200 daily penalty that accumulates for each day of default, while furnishing inaccurate information or failing to correct errors will trigger a flat ₹50,000 fine.

Finance Minister Nirmala Sitharaman highlighted that these measures, proposed under amendments to the Income-tax Act, 2025 (including Section 509), aim to deter missing or misleading disclosures and promote greater transparency in crypto transactions—signaling the government’s push toward formalizing oversight in the rapidly evolving digital asset space.

These measures build on India’s existing crypto tax regime (a flat 30% tax on virtual digital asset gains and 1% TDS on transfers) and align the country with the OECD’s Crypto-Asset Reporting Framework (CARF), a G20-endorsed global standard for automatic exchange of information (AEOI) on crypto activities.

CARF mirrors the transparency mechanisms already in place for traditional financial accounts, aiming to curb tax evasion through offshore crypto holdings, unreported gains, and cross-border transfers.

Industry voices have welcomed the focus on enforcement while noting potential side effects. The combination of these penalties with ongoing taxes could raise operational and compliance costs, particularly for smaller domestic platforms.

This might accelerate consolidation among larger, better-resourced exchanges capable of handling upgraded systems and audits. On the positive side, clearer rules and stronger enforcement are expected to enhance long-term regulatory certainty, potentially attracting more institutional participation and reducing illicit uses of digital assets.

Global Alignment via CARF in 2027

Complementing the domestic push, India’s adoption of CARF will enable automatic sharing and receipt of detailed crypto transaction data (including holdings, trades, transfers, and user information) with participating countries starting April 1, 2027.

Government teams are currently finalizing technical specifications, data formats, and protocols, with rollout preparations underway to ensure seamless integration.

This international dimension will give Indian tax authorities unprecedented visibility into residents’ offshore crypto activities, closing loopholes that previously allowed evasion. It positions India as a committed player in the worldwide effort to make the crypto economy more transparent and tax-compliant.

Overall, the Budget 2026 developments signal a maturing, multi-layered regulatory approach: rigorous domestic penalties to drive immediate compliance, paired with global data-sharing to tackle cross-border challenges.

While short-term adjustments may strain parts of the industry, the long-term outlook points toward greater legitimacy, reduced risks, and a more structured role for cryptocurrencies within India’s financial framework.

Naorem Mohen

Naorem Mohen is the Editor of Signpost News. Explore his views and opinion on X: @laimacha.