CBDT sources indicate that cryptocurrency exchanges must furnish detailed transaction information on virtual digital assets (VDAs) starting next financial year. Under new Section 285BAA of the Income Tax Act, effective April 1, 2026 (AY 2026-27), prescribed reporting entities—including exchanges and intermediaries—will submit data to tax authorities for enhanced compliance and evasion detection. Budget 2026 introduces penalties under Section 509: Rs 200 per day for non-filing and Rs 50,000 for inaccurate info. This builds on existing 30% VDA tax and 1% TDS, amid probes into Rs 888 crore undisclosed income and 4,500+ cases. The move aligns with global standards like CARF, curbing offshore shifts.