Crypto gains remain subject to a 30% tax rate
TechFlow reported on June 14, citing Economic Times, that India’s crypto tax filing season for fiscal year 2026 is placing stricter compliance requirements on investors. Profits from virtual digital assets, or VDAs, continue to be taxed at a 30% rate, while a 1% tax deducted at source also applies. The filing process covers not only overall gains but also detailed records connected to trading, swapping, and disposal of crypto assets.
Under the reporting requirements described in the report, investors must declare VDA-related activity on a transaction-by-transaction basis in Schedule VDA. This means the information submitted by investors needs to correspond to specific transactions, including purchases and sales, conversions between assets, and disposal records. The report framed these requirements as part of India’s fiscal year 2026 crypto tax filing season, with the emphasis on more detailed tax compliance for digital asset activity.
Exchanges and wallet providers must submit user-level data
The compliance push also extends beyond individual investors. India’s 2026 budget requires crypto exchanges, custodians, and wallet service providers to submit user-level transaction data to the country’s tax department. The tax system will automatically cross-check the data submitted by these entities against taxpayer filings, with the stated goal of improving the ability to track income that has not been reported.
According to the report, India’s tax department has already issued more than 44,000 compliance notices and identified about 88.8 billion rupees in undisclosed VDA income, equivalent to around $104 million. Those figures show that India’s review of crypto tax compliance is being strengthened through a combination of individual reporting, institutional data submission, and automated checks within the tax system.