Union Budget 2026-27: Penalty Proposed for Non-Reporting and Misreporting of Crypto Transactions
With the release of the Union Budget 2026-27 on February 01, the government has proposed a key amendment concerning the non-furnishing of a statement or furnishing inaccurate information in a statement on the transaction of crypto-assets. As per the provisions of said section, the prescribed entities must submit a statement giving accurate details of transactions involving crypto-assets, in the manner and within the time prescribed by the law.
Section 509 of the Income Tax Act relates to the requirement of disclosing information related to the transaction of crypto-assets. To make sure taxpayers are complying with the provisions of the said section, the government has proposed introducing a penalty provision in case of non-furnishing of such a statement or for sharing inaccurate information in such a statement. This proposed penalty amounts to Rs. 200 per day for not filing a statement and Rs. 50,000 for filing incorrect information and failure to correct such inaccuracy.
In conclusion, the government is planning to make required changes in section 446 of the Act to include penalty provisions for not filing a statement and disclosing incorrect details related to the statement.
The said amendment is set to take effect from April 01, 2026.
