India keeps 30% VDA levy and 1% TDS unchanged in Union Budget 2026 while adding new crypto tax penalties

On February 1, 2026, India's Union Budget kept the existing crypto tax regime unchanged, including a 30% flat tax on virtual digital asset gains and 1% TDS on each transaction. The budget instead introduced new penalties for non-reporting and inaccurate reporting of crypto statements, set to take effect from April 1, 2026. Industry executives say the lack of broader reforms may continue to weigh on liquidity and participation, even as they welcome clearer compliance enforcement.