India Mandates Crypto Platforms Report Transactions Under OECD Framework

The Central Board of Direct Taxes (CBDT) has issued a guidance note requiring crypto exchanges and intermediaries to report all transactions on their platforms to the income tax department. This move aims to ensure that crypto transactions are part of a transparent global-tax reporting ecosystem, as per the OECD framework.

The CBDT defines a crypto asset as a digital representation of value that relies on a cryptographically secured distributed ledger or similar technology to validate and secure transactions. It includes cryptocurrencies like Bitcoin and Ether, among others.

The note explains that the objective is to bridge the information gap that existed because such assets could be transferred or held outside the traditional financial system. The CARF (Crypto-Asset Reporting Framework) is a global tax transparency framework developed jointly by the OECD and participating countries, including India.