44,000 notifications chase out 88.8 billion rupees; compliance costs skyrocket, and small players are likely to exit the market.

Crypto World News reports that, according to the Economic Times, India's 2026 fiscal year crypto tax filing season imposes higher compliance requirements on investors. The article states that profits from Indian virtual digital assets (VDA) are still taxed at a 30% rate, with a 1% withholding tax (TDS) applied to related transfers. Investors are required to report each transaction, exchange, and disposal in Schedule VDA. The 2026 budget also mandates that crypto exchanges, custodians, and wallet providers submit user-level transaction reports to the Indian Income Tax Department, and the tax system will automatically cross-verify these reports with investor declarations. The report says that the Indian tax authorities have issued over 44k notices and have identified more than 88.8 billion rupees (approximately $104 million) in undisclosed VDA income.