Just caught up on India's budget moves for 2026-27 and there's something interesting happening with their crypto compliance framework that caught my attention. The government kept the 30% tax on crypto gains and 1% TDS unchanged, which honestly disappointed a lot of local traders who were hoping for relief. But here's where it gets tighter - they're introducing a new penalty structure starting April 1st that's worth paying attention to. Anyone reporting crypto transactions under Section 509 now faces ₹200 per day (roughly $2.20) for failing to file properly, plus a flat ₹50,000 penalty (~$545) if your disclosures are inaccurate or you don't fix flagged errors. So essentially, the compliance bar just got higher while the tax burden stayed the same. The stated goal is to strengthen compliance and discourage incomplete reporting, which makes sense from a regulatory standpoint. But market participants are pointing out the friction here - you're looking at a tax structure that doesn't account for losses on transactions, and now stricter penalties on top of it. Ashish Singhal from CoinSwitch noted that reducing TDS from 1% to 0.01% could actually improve liquidity and ease compliance, while raising the threshold to ₹5 lakh would help smaller investors avoid disproportionate impact. The broader issue is that India's keeping the enforcement tight while the underlying tax framework remains unchanged. This kind of approach - tightening compliance rules without addressing the core tax structure - typically pushes more activity offshore rather than encouraging legitimate participation. Curious how this plays out over the next few months as these penalties take effect.