India to share cross-border crypto transaction data from April 2027, Budget 2026 sets ₹200 daily fines for non-reporting

India joins OECD crypto reporting framework

India will begin sharing cross-border cryptocurrency transaction data from 1 April 2027 under the Crypto-Asset Reporting Framework (CARF) developed by the Organisation for Economic Co-operation and Development (OECD). The framework requires exchanges and service providers to report user transactions to tax authorities. India signed the CARF agreement and will exchange information with other participating countries. Government officials confirmed the timeline and stated detailed sharing formats will be released before April 2026.

"India will start information exchange from April 1, 2027 and we are already working on the detailed sharing format which will be out before April this year.", 5 February 2026. — Unnamed official, Government official, Government of India

Budget 2026 establishes strict reporting penalties

Finance Minister Nirmala Sitharaman announced new penalty provisions in Budget 2026 for cryptocurrency reporting violations. The budget introduces a daily penalty of ₹200 for failure to submit required transaction statements. A separate fixed penalty of ₹50,000 applies to filing inaccurate information in crypto asset statements. Both penalties take effect from 1 April 2026 under Section 509 of the Income-tax Act, 2025.

"To ensure compliance with the provisions of Section 509 of the Income-tax Act, 2025 and create a deterrence for non-furnishing of statement or for furnishing inaccurate information in respect of crypto assets in such statement, it is proposed to introduce a penalty provision.", 31 January 2026. — Nirmala Sitharaman, Finance Minister, Government of India

Existing tax framework remains unchanged

India maintains its 2022 cryptocurrency tax structure with a 30% flat tax on profits from virtual digital assets. The government also continues a 1% tax deducted at source (TDS) on certain crypto transactions. Budget 2026 made no changes to these rates. The 30% rate applies to all gains regardless of holding period. Investors cannot offset crypto losses against other income under current regulations.