India Cracks Down on Crypto Tax Reporting with Stricter Enforcement

India is tightening its crypto tax reporting rules for the 2026 filing season. The new regulations, part of the Income Tax Act (2025), will increase compliance requirements and potential consequences for errors. According to Odaily, while the overall tax framework remains unchanged, implementation and disclosure rules have been strengthened.

The new law replaces the 1961 act from April 1, 2026, and affects crypto assets classified as virtual digital assets (VDAs). For the FY2025-26 tax year, investors must report transactions on a per-transaction basis under Schedule VDA. This means each trade, exchange, and asset disposal record will be required.

The new rules pose challenges for users conducting cross-platform transactions or DeFi activity, as maintaining complete data becomes crucial. Failing to disclose any crypto exchange or transaction may trigger compliance risk reviews, with authorities increasing requirements for data matching and verification against on-chain and exchange records.