CBDT Issues Guidance Note on Crypto Reporting to Align with OECD Framework

The Central Board of Direct Taxes (CBDT) has issued a 198-page guidance note on crypto-asset reporting obligations, aiming to help Reporting Crypto-Asset Service Providers (RCASPs) comply with tax regulations.

The note is in line with the OECD's crypto asset reporting framework (CARF), which defines 'crypto-assets' as digital representations of value secured by a distributed ledger or similar technology.

Under CARF, RCASPs must identify users and report on specified transactions to ensure tax transparency. The information will be automatically exchanged with tax authorities in jurisdictions where the crypto-asset users reside.