Tax season has a way of revealing how prepared or unprepared investors actually are. For crypto investors in India, this filing season carries more weight than before. The rules have not changed dramatically, but enforcement has, and the consequences of getting it wrong are more serious than most investors realise.

A New Act, The Same Obligations

The Income Tax Act, 2025 came into force on April 1, 2026, replacing the 1961 Act. For investors filing for FY 2025-26, the old Act’s provisions still govern your obligations. The core framework remains intact: a flat 30% tax on profits from Virtual Digital Assets, a 1% TDS on transfers exceeding Rs 10,000, no deductions except the cost of acquisition, and no ability to offset losses from one