India has revised its global tax reporting rules to explicitly cover crypto-assets, central bank digital currencies and certain digital money products, in a move that aligns the country more closely with the OECD’s Crypto-Asset Reporting Framework.

The update, issued by the Central Board of Direct Taxes, extends reporting expectations beyond traditional financial accounts and is intended to bring cross-border digital asset activity into the same information-sharing system already used for other financial holdings.

Crypto added to India’s reporting framework

India’s Automatic Exchange of Information framework, used under FATCA and the Common Reporting Standard, had mainly focused on conventional financial products such as bank accounts, investments and insurance. The revised guidance adds digital assets to that reporting perimeter.

According to the source article, the change is meant to address a gap created by crypto assets, which can be stored and transferred outside the traditional banking system. By updating the rules, the CBDT is moving India’s standards closer to the OECD model designed specifically for crypto-related tax reporting across jurisdictions.

New obligations for exchanges and intermediaries

The main compliance impact will fall on Reporting Crypto-Asset Service Providers, or RCASPs, a category that includes crypto exchanges and other firms that facilitate digital asset transactions.

These entities will be required to identify users, determine their tax residency, collect taxpayer identification details where applicable, maintain transaction records and report relevant crypto transactions to the Income Tax Department. The framework is intended to subject digital asset activity to a level of scrutiny comparable to that applied to traditional financial accounts.

Broader due diligence and cross-border sharing

The revised guidance also raises due diligence expectations for financial institutions beyond crypto-native platforms. Banks, custodians, insurers, investment entities and other reporting financial institutions must carry out additional reviews for high-value accounts exceeding $1 million before deciding what reporting obligations apply.

Under CARF, participating jurisdictions are expected to automatically exchange crypto-related taxpayer information with one another. The source article says that process is set to begin in 2027, creating a cross-border reporting channel for digital asset activity that previously sat outside older frameworks.

What the change does and does not do

The update does not create a new tax on crypto investors, according to the source article. Instead, it expands disclosure and reporting around holdings and transactions involving digital assets.

The significance for the industry is operational rather than rate-based. Exchanges, custodians and similar service providers are likely to face wider compliance duties as they are brought into a globally recognized reporting system for crypto activity.

Next step under India’s G20-era commitment

India’s move also reflects the commitments made during its G20 Presidency, when member countries agreed to begin exchanging crypto tax information under the OECD framework from 2027.

That means the next confirmed step is not a new domestic tax measure, but the rollout of reporting and information-sharing processes that connect India’s tax administration with the broader international CARF network.

Source: Coin Edition