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, known as TDS, also applies. The report frames the new filing season as one in which crypto investors must handle VDA-related gains under the same headline tax and withholding structure, while providing more detailed information to the tax authorities.
Schedule VDA requires itemized reporting
Under the filing requirements described in the report, investors must disclose transaction, exchange and disposal records on an item-by-item basis in Schedule VDA. This means that crypto asset activity is not limited to a single aggregate profit figure in the filing process. Transactions, swaps or exchanges, and asset disposals all fall within the scope of information that investors are required to report in the relevant schedule.
For investors, the Schedule VDA requirement links the tax filing more closely to specific crypto asset activity. Each recorded transaction, exchange or disposal is part of the information that can be used for tax verification. In India’s tax framework, VDA refers to virtual digital assets, and income from crypto asset transactions is handled within that category for reporting and taxation purposes.
Exchanges, custodians and wallet providers must submit user-level data
The report also states that India’s 2026 budget requires crypto exchanges, custodians and wallet service providers to submit user-level transaction data to the Indian tax department. The tax system will automatically cross-check that data against information declared in tax filings. According to the report, this mechanism is designed to improve the department’s ability to track income that has not been reported by taxpayers.
The user-level data submission requirement brings platform-side records into the compliance process. Information held by exchanges, custodial service providers and wallet operators can be compared with what individual taxpayers declare. The report does not describe this as a separate tax rate, but as a data-reporting and verification measure that works alongside the VDA tax and TDS framework.
Economic Times reported that the Indian tax department has already issued more than 44,000 compliance notices. It has also detected around 88.8 billion rupees in undisclosed VDA income, equivalent to about $104 million. These figures show that the review of crypto tax compliance by Indian regulators is strengthening, and undeclared virtual digital asset income has become a central focus of the current checks described in the report.