CBDT Tightens Crypto Reporting Compliance, Aligning with Global Standards

The Central Board of Direct Taxes (CBDT) has released guidelines for crypto asset service providers (RCASPs) to comply with tax reporting obligations under the Crypto-asset Reporting Framework (CARF).

These guidelines require RCASPs, including crypto exchanges and other digital asset intermediaries, to file Form 167 with details of reportable users and transactions.

Crypto analysts emphasize that the framework does not introduce a new tax or separate reporting requirement for investors but rather aligns with global reporting requirements under the Organisation for Economic Co-operation and Development (OECD) framework.

The compliance framework aims to provide tax authorities with better access to transaction data, including information obtained from participating overseas jurisdictions.