India adds ‘crypto’ assets, CBDCs to tax reporting guidelines

Homepage > News > Finance > India adds ‘crypto’ assets, CBDCs to tax reporting guidelines India has revised its international tax reporting guidance to cover certain digital currencies, central bank digital currencies (CBDCs), and digital money products, while also generally tightening due diligence for financial institutions, according to a report on August 4 from the local outlet The Economic Times. The move marks the country’s implementation of the Crypto-Asset Reporting Framework (CARF)—an international standard for tax reporting and information sharing—within India’s existing automatic exchange of information regime. The revised guidance was reportedly issued by the Central Board of Direct Taxes (CBDT) and affects India’s Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS) implementation rules. The new guidance lays down a compliance framework for reporting financial institutions (RFIs), including banks, mutual funds, insurers, custodians, and other investment entities, on identifying reportable accounts, validating tax residency, and reporting financial information under the country’s Automatic Exchange of Information (AEOI) commitments. It...