India Shifts Crypto Tax Burden to Exchanges Under OECD Framework

The Central Board of Direct Taxes (CBDT) has released guidance on crypto tax reporting in India. The document clarifies that Reporting Crypto-Asset Service Providers (RCASPs), not individual investors, will bear the primary compliance burden.

According to the CBDT, RCASPs must report transactions and taxes under Section 509 of the Income-tax Act, 2025. This includes strengthening KYC, tax residency identification, and transaction reporting systems.

The guidance note also formalises India's alignment with the Organisation for Economic Co-operation and Development's Crypto-Asset Reporting Framework (CARF). The framework involves over 50 participating jurisdictions and is set to begin in April 2027.