Odaily Planet Daily report: India’s 2026 tax filing season imposes stricter compliance requirements on crypto investors. Although the tax framework has not undergone drastic changes, enforcement and reporting details have been 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, cryptocurrency assets (VDA) must still be reported under the existing framework, but with enhanced operational requirements. Specifically, Schedule VDA mandates investors to report on a "per-transaction" basis rather than merely summarizing net gains, requiring detailed records of every transaction, conversion, and asset disposal. For users engaging in cross-platform trades, DeFi operations, or transfers across multiple wallets, ensuring data integrity and consistency presents a key challenge.
Analysis indicates that failing to fully report any cryptocurrency exchange or transaction may trigger a compliance review, as regulators are increasingly demanding accurate matching of data and verification of on-chain and exchange records. (The Times of India)