India Issues 44,000+ Tax Notices as $104M in Crypto Income Remains Undisclosed

India is stepping up enforcement of crypto tax rules as the 2026 tax season nears, according to The Economic Times. Under the existing framework, profits from virtual digital assets (VDAs) are subject to a uniform 30% tax rate, while specified transactions are liable for a 1% tax deducted at source (TDS).

In line with this structure, taxpayers are also required to report all crypto activity—including trades, swaps, and disposals—under Schedule VDA in their income tax returns. This disclosure requirement improves transparency in the sector and ensures full reporting of digital asset transactions.

In addition, compliance monitoring is being strengthened through expanded data reporting obligations. Crypto exchanges, custodians, and wallet providers must now share user-level transaction data with the Income Tax Department, so that authorities can automatically match records with individual filings.

According to the report, this intensified oversight has already led to more than 44,000 notices being issued in VDA-related cases. Meanwhile, over ₹888 crore (around $104 million) in undisclosed crypto income has been identified.

Source: The Economic Times