India Incorporates Cryptos into Tax Reporting Guidelines Under CARF

India has updated its tax reporting guidelines to include 'crypto' assets and central bank digital currencies (CBDCs), as part of its implementation of the Crypto-Asset Reporting Framework (CARF). The revised guidance was issued by the Central Board of Direct Taxes (CBDT) and affects India's Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS) implementation rules.

The new framework requires reporting financial institutions to apply enhanced due diligence to high-value accounts with balances exceeding $1 million, and introduces updated procedures for validating tax residency and identifying reportable accounts across financial institutions covered by FATCA and CRS obligations.

India's commitment to CARF was announced in June, when the country formally joined the Global Forum's commitment process. The OECD cited India as one of five jurisdictions relevant to CARF that had not yet committed to implementing the framework, but it is expected to begin exchanges in 2027 under its new agreement.