India 2026 tax season tightens crypto tax compliance requirements: Strengthened per-transaction VDA reporting, compliance and data integrity become key

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

India implements 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 every 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 points out that failing to fully report any single crypto asset exchange or transaction may trigger compliance risk reviews. Regulatory requirements for data matching and on-chain/exchange record verification are increasing. (Times of India)