India Expands Tax Reporting Rules to Cover Crypto Assets and CBDCs

India has expanded its global tax reporting rules to include crypto assets, central bank digital currencies (CBDCs), and digital money products. The Central Board of Direct Taxes (CBDT) updated its FATCA and Common Reporting Standard (CRS) framework to cover these new categories under its Automatic Exchange of Information (AEOI) commitments.

The revised rules require reporting financial institutions, including banks, mutual funds, insurers, custodians, and investment entities, to apply stricter due diligence. These institutions must now verify tax residency more thoroughly and improve financial reporting.

Additionally, enhanced reviews will be applied to high-value accounts exceeding $1 million before determining their reporting status.