Chainlink (LINK) Tokens: Compliance Position for Holders and Dealers in FY 2026-27

This article explains how a holder or dealer in LINK, the native token of the Chainlink network, is treated in India for FY 2026-27 under the Income-tax Act, 2025 (in force from 1 April 2026), the PMLA and FIU-IND framework, FEMA, GST and accounting standards, as the law stands on 7 October 2026.

It is relevant now because the VDA tax rules continue under new section numbers and forms, and because in September 2026 FIU-IND issued non-compliance notices to 15 VDA service providers and began access-blocking of identified non-compliant services, which affects where clients should trade.

The token

As described in the network's own documentation, LINK pays for network services, compensates node operators and supports cryptoeconomic security through staking. It is an ERC-677 token with ERC-20 functionality, originally issued on Ethereum, and total supply is capped at one billion. Chainlink Staking v0.2 allows eligible holders to stake subject to capacity and protocol rules; the displayed reward rate is variable and not guaranteed.

Where your client is an Indian trader or investor

Classification. LINK is ordinarily a virtual digital asset for Indian tax. Tradability on an exchange does not turn it into a listed security.

Rate. Income from transfer of a VDA is taxed at the special 30% rate under Section 194, Table Sl. No. 4 of the Income-tax Act, 2025, plus surcharge and health and education cess. A longer holding period gives no lower rate.

Deductions. Cost of acquisition is allowed. Other items, such as exchange fees, wallet costs, borrowing costs, subscriptions and overheads, are not to be assumed deductible.