India updates tax reporting rules to include crypto assets and CBDCs

India has expanded its global tax reporting framework to include specified crypto-assets, central bank digital currencies, and digital money products under updated FATCA and Common Reporting Standard rules. Summary India’s CBDT has expanded FATCA and CRS reporting rules to include specified crypto assets, CBDCs, and digital money products. Banks, insurers, custodians, mutual funds, and other reporting institutions must follow updated account identification and tax residency verification requirements. High value accounts with balances above $1 million will be subject to enhanced due diligence before being classified for reporting. The revised framework follows recent regulatory actions that increased oversight of crypto transactions, offshore trading, and large OTC deals. The Economic Times reported that 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, central bank digital currencies (CBDCs), and digital money products within the scope of international tax reporting. The updated guidance sets out revised compliance requirem...