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India Tightens Crypto Tax Requirements for the 2026 Tax Year: Enhanced VDA Transaction-by-Transaction Reporting Makes Compliance and Data Integrity Critical
Svmuu News: India’s 2026 tax filing season imposes stricter compliance requirements on crypto investors. Although there have been no drastic changes to the tax framework, enforcement has been significantly tightened and filing rules have become more stringent, making the potential consequences of filing errors more severe. India will implement the new Income Tax Act (2025) effective April 1, 2026, replacing the original 1961 Act. For the FY2025-26 tax year, crypto assets (VDAs) must still be reported under the existing framework, but enforcement requirements have been further refined. Specifically, Schedule VDA requires investors to report on a “transaction-by-transaction” basis, rather than simply reporting net gains, covering every transaction, exchange, and asset disposal record. For users engaging in cross-platform trading, DeFi operations, and multi-wallet transfers, ensuring data completeness and consistency has become a key challenge. Analysis indicates that failure to fully report any single crypto asset exchange or transaction may trigger compliance risk reviews, as regulators are increasingly demanding data matching and verification against on-chain and exchange records. (The Times of India)
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