India's 2026 Tax Season Tightens Crypto Compliance Requirements: Enhanced VDA Per-Transaction Reporting, Compliance and Data Integrity Become Key

Odaily Odaily reports that India's 2026 tax filing season imposes stricter compliance requirements on crypto investors. Although the tax framework has not undergone drastic changes, enforcement intensity and reporting details have significantly tightened, making the potential consequences of filing errors more severe.

India has implemented the new Income Tax Act (2025) effective April 1, 2026, replacing the original 1961 Act. For the FY2025-26 tax year, crypto assets (VDAs) still need to be reported under the existing framework, but the execution requirements have been further refined. Specifically, Schedule VDA requires investors to report on a "per-transaction" basis rather than merely aggregating net gains, covering records of each transaction, exchange, and asset disposal. For users involved in cross-platform trading, DeFi operations, and multi-wallet transfers, data integrity and consistency have become core challenges.

Analysis indicates that failing to fully report any crypto asset exchange or transaction could trigger compliance risk reviews, as regulators are increasingly demanding data matching and on-chain/exchange record verification. (Times of India)