Union Budget 2026–27 leaves crypto tax rules unchanged: a flat 30% tax on gains and a 1% TDS on trades remain. The Finance Bill adds penalties for reporting lapses under Section 509 via amendments to Section 446: ₹200 per day (~$2.20) for non-filing and a flat ₹50,000 (~$545) for incorrect or unrectified disclosures, effective April 1, 2026. Industry participants expressed disappointment and called for TDS relief to improve liquidity and fairness.

Facts: the Budget keeps the 30% flat tax and 1% TDS unchanged; new penalties are ₹200/day for non-filing and ₹50,000 for incorrect/unrectified disclosures, effective April 1, 2026. Industry disappointment and calls for TDS relief were reported. These facts imply increased compliance costs and unchanged withholding that can suppress liquidity, supporting a slightly bearish, moderate-impact view for traders.