India Widens Tax Reporting Scope to Include Crypto-Assets, CBDCs

India has expanded its global tax reporting framework to include specified crypto-assets, central bank digital currencies (CBDCs), and digital money products under updated FATCA and Common Reporting Standard rules.

The Central Board of Direct Taxes (CBDT) has revised India's implementation guidance for the Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS), bringing specified crypto-assets, CBDCs, and digital money products within the scope of international tax reporting.

Under the framework, banks, mutual funds, insurance companies, custodians, and other investment entities must identify reportable accounts, verify customers' tax residency, and report financial information as part of India's commitments under the Automatic Exchange of Information (AEOI) framework.

The revised rules require reporting institutions to apply enhanced due diligence to high-value accounts with balances exceeding $1 million. The guidance calls for additional review procedures before such accounts are classified for reporting.