India Widens Tax Net to Include Crypto-Assets, CBDCs

India has updated 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) made changes to its FATCA and Common Reporting Standard (CRS) framework to improve tax residency verification and financial reporting under the country's Automatic Exchange of Information (AEOI) commitments.

Institutions, including banks, mutual funds, insurers, custodians, and investment entities, must apply stricter due diligence requirements for reporting financial institutions. This is to enhance reviews for high-value accounts exceeding $1 million before determining their reporting status.