India Aligns with Global Tax Transparency Standard for Crypto Transactions

The Central Board of Direct Taxes (CBDT) has issued a new guidance note outlining how Indian crypto platforms and foreign exchanges serving Indian users must report transactions under the Income-tax Rules, 2026.

The move operationalizes reporting obligations under Section 509 of the Income-tax Act, 2025, and formally aligns India with the OECD's Crypto-Asset Reporting Framework (CARF), a global tax transparency standard adopted by more than 50 participating jurisdictions.

Crypto platforms and exchanges will be required to strengthen their KYC processes, tax residency identification systems, and transaction reporting mechanisms to meet the new standard.

The compliance load falls mainly on exchanges, but the shift is expected to significantly increase the tax department's visibility into individual crypto holdings and transactions.