Effective April 1, 2026, investors must report every single crypto transaction—every trade, every conversion, every disposal. Year-end net-gain reporting no longer suffices.
A single missed or inaccurate transaction report triggers Rs 200 (~$2.40 USD) per day in fines. Serious lapses escalate to Rs 50,000. For active traders on multiple exchanges, this creates compounding exposure.
On top of compliance fines, the tax structure itself is punitive: flat 30% tax on gains, 1% TDS on transactions, and zero ability to set off losses against other income. No loss carryforward allowed.
The message is unmistakable: India is building a high-friction, high-enforcement environment for crypto. Traders can expect rigorous audits, reporting requirements that don't forgive honest mistakes, and no tax relief for losing trades.
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