February 2 News, the Indian government confirmed in the federal budget for the fiscal year 2026–2027 that it will continue to maintain the current cryptocurrency taxation and withholding tax system, while introducing a stricter reporting penalty mechanism. This policy combination signifies that India’s cryptocurrency regulation enters a phase of “high tax rate + strong compliance,” attracting significant market attention. According to the amendments to the Finance Bill, all entities required to report cryptocurrency transactions to tax authorities who fail to submit reports within the specified time will face daily fines. Specifically: a fine of 200 rupees (approximately $2.20) for each day of delay until the report is submitted; if the reported information contains errors or remains uncorrected after being flagged, an additional fixed fine of 50,000 rupees (approximately $545) will be imposed. The new regulations will take effect on April 1, 2026.

The Indian government is enhancing cryptocurrency enforcement training to address the complexities of crypto financial crimes, covering multiple agencies, focusing on technologies such as blockchain forensics and asset seizure, aiming to enhance the capabilities of law enforcement officers in dealing with virtual digital asset crimes.

According to the Indian Ministry of Finance, under anti-money laundering laws, the Enforcement Directorate has seized crypto-related assets worth approximately 41.8989 billion rupees, arrested 29 individuals, and filed 22 lawsuits. Additionally, around 8.8882 billion rupees in undeclared income was discovered. The government is pushing to strengthen the regulation and monitoring of virtual digital assets.

PANews, August 18 news, Bitinning founder Kashif Raza posted on the X platform stating that the Indian CBDT (Income Tax Department) has communicated with local crypto asset exchanges, requesting them to provide feedback on issues such as VDA (Virtual Digital Asset) regulation, volume outflow, tax framework, loss deductions, the impact of a 30% tax rate, challenges in TDS enforcement, and tax fairness between domestic and foreign exchanges. This is the first formal dialogue regarding crypto tax policy in India.

According to Gate News bot, PTI reported that last week, official sources stated that the Income Tax Department (ITD) has issued notices to thousands of individuals who engaged in Crypto Assets trading but did not report this income on their tax returns.