India Mandates CARF Crypto Reporting for Exchanges Under Income Tax Act

The Indian government has taken a significant step towards improving tax transparency in the crypto space by introducing new guidelines for crypto exchanges and platforms under the Crypto-Asset Reporting Framework (CARF). As per the CARF, these platforms are required to report transactions to the Income Tax Department, aligning with global standards.

The move is part of India's efforts to comply with the OECD's CARF, which has already been implemented by nearly 50 countries. The new guidelines do not introduce any new tax policies but aim to improve tax transparency and visibility into virtual digital asset transactions.

Mudrex CEO Edul Patel called this development a 'meaningful step' towards establishing a comprehensive crypto regulatory framework in India. He noted that while the guidance note focuses on tax reporting, it lays an important foundation for broader policy frameworks.