Quick Summary
The Government has proposed a new penalty framework for failure to furnish statements or for furnishing inaccurate information relating to crypto transactions. The proposal seeks to enforce reporting obligations under the Income-tax law and introduce deterrence against non-compliance in the rapidly evolving digital asset ecosystem. Reporting Obligation Under Section 509 Section 509 of the Income-tax Act places an obligation on prescribed reporting entities to furnish a statement containing
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FAQ :
A penalty of £200 per day will be levied for failing to furnish the required statement on crypto-asset transactions.
A penalty of £50,000 will be imposed for furnishing inaccurate particulars in the statement and failing to correct such inaccuracies.
The proposed penalty provisions will come into force from 1 April 2026.
The penalties are being introduced to ensure effective implementation of reporting obligations under Section 509 of the Income-tax Act and to deter non-compliance in the digital asset ecosystem.
Section 509 of the Income-tax Act places an obligation on prescribed reporting entities to furnish a statement containing details of transactions in crypto-assets.
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