India Aligns Crypto-Asset Reporting with Global Standards
The Central Board of Direct Taxes (CBDT) has issued guidelines for crypto-asset service providers to report their activities under the Crypto-Asset Reporting Framework (CARF).
This move aims to bring virtual digital asset transactions under a more structured tax reporting framework, in line with global standards.
Crypto exchanges and other intermediaries will now have to comply with tax reporting obligations under the Income Tax Act, 2025.
According to experts, this is a significant step towards building a transparent and credible digital asset ecosystem in India.
India remains an outlier among major global economies, which have implemented various regulatory frameworks for crypto assets. For example, Japan has brought crypto assets under its securities law, while the US applies the Howey test to bring security-like tokens under existing law.