CBDT Issues Guidance for Crypto Service Providers Under Income Tax Act

The Central Board of Direct Taxes (CBDT) has issued a guidance note for crypto-asset service providers to comply with the Income Tax Act. The note does not introduce any new taxation framework but aims to help exchanges and intermediaries report transactions required by law.

The guidance operationalizes India's adoption of the OECD's Crypto-Asset Reporting Framework (CARF), which enables automatic exchange of tax information among participating jurisdictions.

CBDT Chairman Ravi Agarwal wrote that India's commitment to combating tax evasion remains strong. He noted that the rapid growth of crypto-assets brought a new challenge, as these assets can be issued, held, and transferred outside traditional financial systems.