India's crypto tax review exposes approximately $930 million in unreported income, with comprehensive strengthening of individual declaration and cross platform verification for the 2026 tax season According to BlockBeats, on June 14th, with the strengthening of tax enforcement in India, cryptocurrency investors face stricter declaration and compliance requirements in the 2026 tax season, and incorrect declarations may trigger fines and reviews. The report points out that according to current rules, the income from encrypted assets is still subject to a 30% unified capital gains tax, and a 1% source tax deduction (TDS) is levied on transactions exceeding a certain amount, while losses cannot be offset across assets. The new Income Tax Law (2025) has come into effect on April 1, 2026, but the core tax framework remains largely unchanged. At the declaration level, investors are required to fill out a dedicated Schedule VDA column in the ITR-2 or ITR-3 form and record each transaction on a transaction by transaction basis, including all operations such as trading, exchange, transfer, and clearing, rather than just summarizing profits. The report emphasizes that the regulatory focus has been significantly upgraded. The Indian tax department will directly obtain user level transaction data through trading platforms, custodians, and wallet service providers, and automatically cross check it with declaration information. Inconsistencies will trigger system tagging and review. Data shows that Indian tax authorities have issued over 44000 notices and discovered approximately 88.8 billion rupees (approximately 930 million US dollars) of unreported virtual asset income. At the same time, the tax department is combining on chain analysis tools with international data sharing mechanisms to further enhance tracking capabilities. In addition, starting from 2027, India will integrate with the OECD Cryptocurrency Asset Reporting Framework to achieve automatic exchange of cross-border transaction data, and overseas exchange holdings will gradually be brought into regulatory sight. Analysis indicates that common errors include misuse of declaration forms, omission of airdrop and pledge income, and incorrect matching of 1% TDS records. The report emphasizes that cryptocurrency tax compliance is shifting from "post reporting" to "real-time traceability", and investors need to strengthen their annual record management. [Original link]