India Expands Tax Reporting Rules to Include Crypto Holdings

India's tax authorities have expanded their reach into digital assets by requiring financial institutions to report cryptocurrency holdings. This move is part of a broader effort to enhance transparency and curb tax evasion through digital asset transactions.

The revised rules apply to banks, mutual funds, insurers, and custodians, who will need to implement stricter customer verification and due diligence procedures for accounts with balances exceeding $1 million. This threshold targets high-net-worth individuals and entities that may be using cryptocurrency to move funds across borders or obscure their financial footprint.

The new measures align with global standards set by the Financial Action Task Force (FATF) and reflect India's commitment to combating money laundering and terrorist financing.