India to Enhance Tax Oversight: Comprehensive Monitoring of Digital Assets and Cryptocurrencies from 2026

According to the latest provisions of India's Income Tax Act, 2025, effective April 1, 2026, the Indian Income Tax Department will be granted authority to conduct comprehensive monitoring of individuals' digital activities, encompassing social media accounts, email communications, and online financial transactions. This initiative aims to strengthen the tax authority's detection capabilities, effectively identifying tax evasion, undisclosed assets, and concealed cryptocurrency holdings. The regulatory measure reflects the Indian government's increasing focus on the Web3 sector and digital assets, marking a new phase of digital and multidimensional oversight within India's tax regulatory framework. For participants engaged in cryptocurrency trading and digital asset investment in India, this move will significantly increase requirements for asset transparency and tax compliance costs.

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