By 
The world of cryptocurrency in India has long been a subject of government scrutiny, often marked by what can only be described as an ambivalent attitude. While the Finance Ministry and the Reserve Bank of India have consistently cautioned against the inherent risks and volatility of crypto-asset investments, the government has also been quick to ensure its share of the profits, levying a substantial 30% tax on income derived from such investments.
This creates a peculiar dilemma for investors: on one hand, official bodies discourage engagement; on the other, the state is keen to benefit financially if you choose to invest. It’s a clear signal that regardless of its stance on the asset class itself, the government expects compliance when it comes to taxation.
Now, with Budget 2026, the government is set to tighten the screws even further. For those who might have hoped to fly under the radar or perhaps overlooked their responsibilities, a new directive is coming into play. The government has announced its intention to “crack the whip on errant crypto investors.”
What does this mean for you? Specifically, if you fail to furnish the required statements concerning your crypto-asset holdings and transactions, you could face a significant financial penalty. The proposed penalty is Rs 200 per day for every day the statement is not furnished.
This new measure underscores the government’s growing seriousness about tracking and regulating the crypto space for tax purposes. It moves beyond just taxing profits to actively enforcing disclosure and compliance. For crypto investors in India, this development makes it absolutely imperative to maintain accurate records and ensure all necessary statements are filed promptly and correctly. Ignoring these obligations could now prove to be a costly oversight, adding a daily penalty burden on top of existing tax liabilities.
Budget 2026 serves as a stark reminder: while the debate around crypto’s future in India continues, the government’s stance on tax compliance in this arena is becoming increasingly firm. Stay informed, stay compliant, and avoid the daily penalty.
Source: Original Article
Comments