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India’s 2026 tax season tightens crypto disclosure under Schedule VDA

India’s 2026 tax season tightens crypto disclosure under Schedule VDA

India’s tax authorities are requiring trade-level crypto reporting for FY2025-26 and have issued more than 44,000 notices as enforcement intensifies over undisclosed virtual asset gains.

Fact Check
Every component of the claim is corroborated. The ClearTax 2026 guide confirms the 30% flat tax (plus 4% cess), 1% TDS under Section 194S, no loss set-offs, and mandatory Schedule VDA reporting for AY 2026-27. CryptoBriefing documents rising enforcement — 44,000+ CBDT notices and ~$104M in undisclosed crypto income identified through the NUDGE data-cross-referencing program and Section 148A reassessments. IndiaPolicyHub independently restates the 30% tax, 1% TDS, and Schedule VDA disclosure framework. The 'trade-level reporting' element is consistent with social/press references requiring every trade to be filed under Schedule VDA. The combined evidence strongly supports the claim.
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Summary

India’s 2026 tax filing season is bringing tighter compliance requirements for crypto investors, with FY2025-26 filings requiring transaction-by-transaction disclosure in Schedule VDA under ITR-2 or ITR-3 rather than simple net-gain reporting. The existing regime imposes a 30% tax on virtual digital asset gains, a 1% tax deducted at source on qualifying trades, and does not allow losses in one asset to be set off against gains in another. Enforcement has also intensified, with the Income Tax department issuing more than 44,000 notices over undisclosed gains; the sources cite about 88.8 billion rupees in unreported virtual asset income, while a newer report said ₹888M ($104M), indicating a discrepancy in the reported amount. The Income Tax Act, 2025 is scheduled to take effect on April 1, 2026, replacing the 1961 law, but crypto reporting for FY2025-26 remains under the current framework.

Terms & Concepts
  • Schedule VDA: The tax return section where taxpayers report virtual digital asset transactions in detail.
  • virtual digital assets: India’s tax category for crypto-related digital assets.
  • tax deducted at source: A levy collected at the point of a transaction, with part of the payment withheld and remitted to the government.