Undeclared cryptocurrency assets will now attract a penalty of Rs 200 per day, as per Section 509 of Income Tax Act 2025. Also, a penalty of Rs 50,000 will be levied for furnishing inaccurate particulars and failure to correct such inaccuracy.
The new act will come into effect from April 1, 2026 onwards, replacing the existing Income Tax Act 1961. Finance Minister Nirmala Sitharaman announced while presenting the Union Budget on Sunday.
"To ensure compliance to the provisions of section 509 of the Act and create a deterrence for non-furnishing of such statement or for sharing inaccurate information in such statement, it is proposed to introduce penalty provision. 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 Budget document highlights.
The Budget also proposes an amendment of Section 446 of the Income Tax Act to provide penalty provisions for non-declaration of crypto statement, and for reporting inaccurate information in the statement.
Capitalmind AMC CEO Deepak Shenoy outlined the new provision in a post on social media platform X, alerting investors who have not declared their crypto assets. "If you haven't declared your crypto assets - penalties at 200/day and 50K for inaccurate reporting," he posted.
The penalty provision was introduced to deter non-furnishing of such statement, and to prevent inaccurate reporting.
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