India Tightens Crypto Tax Reporting Ahead of the 2026 Filing Season

India is set to raise the bar for crypto tax compliance in the 2026 filing season, with tougher reporting rules and stricter enforcement that increase the cost of mistakes, according to The Times of India. The country's new Income Tax Act (2025) takes effect on April 1, 2026, replacing the Income Tax Act of 1961. For the FY2025–26 assessment, crypto assets classified as Virtual Digital Assets (VDA) will continue to be reported under the existing framework, but with more demanding operational requirements. A key change is in Schedule VDA, which shifts reporting to a per-transaction basis rather than allowing taxpayers to rely on a high-level summary of net gains. Investors will need to maintain and disclose detailed records for every trade, conversion, and disposal. The burden is expected to be heavier for users active across multiple exchanges, DeFi protocols, or wallets, where reconciling records and keeping consistent data becomes more complex. Analysts note that incomplete disclosure of any trade or transfer could prompt a compliance review as authorities push for tighter data matching and verification between on-chain activity and exchange records.