India Adopts OECD's Crypto-Asset Reporting Framework

The Central Board of Direct Taxes (CBDT) has issued a guidance note requiring crypto exchanges and other intermediaries to report all transactions on their platforms to the Income Tax department.

This move aims to bridge the information gap that existed due to crypto assets being transferred or held outside the traditional financial system.

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

Crypto exchanges will now be required to collect, verify and report specified information relating to crypto transactions, including customer due diligence and determining the tax residency of users.