Budget 2026 acts big on inaccurate reporting of crypto asset transactions; know what this means for you

Budget 2026 has promised big action for non-compliance in reporting of crypto transactions by entities like exchanges, marketplaces, and others. Now there will be a penalty for not accurately reporting crypto transactions in a specified statement.

In a statement on the transaction of crypto-assets, Budget 2026 has proposed a penalty provision for non-furnishing of statements or furnishing inaccurate information. To ensure compliance and deter non-reporting or incorrect reporting, the Union Budget 2026 proposes to introduce penalty provisions for the transaction of crypto assets.

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 proposed amendment introduces a calibrated penalty framework for reporting of crypto-asset transactions, bringing much-needed certainty to compliance obligations in this space. A daily penalty of ₹200 for non-furnishing of the prescribed statement ensures timely reporting, while a flat penalty of ₹50,000 for furnishing inaccurate particulars or failure to rectify defects addresses data integrity concerns, says CA Mohit Gupta, Partner – PNAM & Co LLP.

Section 509 of the Act provide for obligation to furnish information on transaction of crypto-asset. As per the said section, prescribed reporting entity has the obligation to furnish information in respect of transactions in a crypto asset in a statement.

Accordingly, it is proposed to amend section 446 of the Act to provide penalty provisions for non-furnishing of statement and for furnishing inaccurate information in the statement. The amendment will take effect from the 1st day of April, 2026.

By inserting a dedicated penalty provision under Section 446 and making it effective from 1 April 2026, the legislature is clearly signalling a shift from ambiguity to enforcement, aligning crypto-asset reporting with established information-reporting regimes under the Income-tax Act, Gupta adds.

Importantly, the focus is not on penalising genuine transactions but on ensuring transparency and traceability in an asset class that has systemic risk and cross-border implications, he continues.

The Union Budget 2026 sends a clear and constructive signal for India’s crypto ecosystem by reinforcing the importance of accurate and timely reporting of crypto-asset transactions. 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. Importantly, I believe this clarity enables exchanges and market participants to build compliance frameworks with greater confidence and operational certainty, says Raj Karkara, COO, ZebPay.

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 adds.