India's 2026-27 federal budget will maintain the current 30% tax on cryptocurrency gains and a 1% withholding tax, despite calls from industry groups for tax reductions. Instead, the government will implement new penalties starting April 1, 2026, for non-compliance with crypto transaction reporting under Section 509 of the Income Tax Act. Entities failing to declare crypto transactions will face a daily fine of 200 rupees (approximately US$2.20), while incorrect submissions will incur a fixed penalty of 50,000 rupees (approximately US$545). This move aims to enhance compliance, though it may increase operational challenges for traders.