What crypto investors need to know for tax season 2026
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India's new Income Tax Act, 2025 came into force on April 1, 2026, but core crypto tax obligations for FY 2025-26 remain unchanged — a flat 30% tax on Virtual Digital Asset profits, 1% TDS on transfers exceeding Rs 10,000, and no cross-asset loss offsetting. Budget 2026 introduced a key structural change requiring crypto exchanges, custodians, and wallet providers to furnish user-level transaction data directly to the Income Tax Department for automatic cross-referencing against ITR filings, with the department having already issued over 44,000 notices and detected Rs 888 crore in undisclosed VDA income. India is also aligning with the OECD's Crypto-Asset Reporting Framework, with cross-border data-sharing enforcement targeted for April 1, 2027.