India Expands Tax Rules to Cover Crypto Assets, CBDCs, and Digital Money

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

The new rules require reporting financial institutions, including banks, mutual funds, insurers, custodians, and investment entities, to apply stricter due diligence requirements for tax residency verification and financial reporting. Institutions must also review high-value accounts exceeding $1 million before determining their reporting status.