India Raises the Bar for Crypto Tax Reporting Ahead of the 2026 Filing Season

According to ME News, India is set to tighten compliance obligations for crypto investors in the 2026 tax filing season, with stricter reporting and enforcement even though the core tax framework remains broadly unchanged. The tougher rules increase the stakes for mistakes or omissions in filings. India's new Income Tax Act (2025) takes effect on April 1, 2026, replacing the 1961 law. For the FY202526 tax year, cryptocurrency assets classified as virtual digital assets (VDA) will continue to be reported under the existing regime, but the mechanics of reporting are being sharpened. A key change is to Schedule VDA: investors must disclose activity on a per-transaction basis rather than simply reporting net gains. This requires itemized records for every trade, exchange, and disposal. For taxpayers using multiple platforms, DeFi protocols, or multiple wallets, maintaining consistent and complete data across accounts becomes a major compliance hurdle. Analysts warn that failing to report even a single crypto trade or exchange could prompt a compliance review, as regulators step up data-matching and verification against on-chain information and exchange records. (Source: ODAILY)