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.