India's New Crypto Reporting Rules Explained: What You Should Know

The Central Board of Direct Taxes (CBDT) released a detailed guidance note explaining how crypto-asset platforms operating in India must identify their users and report transactions to tax authorities, formally bringing the country's digital-asset sector under a global tax-transparency net.

The guidance is aimed chiefly at exchanges and other intermediaries, referred to as Reporting Crypto-Asset Service Providers (RCASPs).

Why this framework is released

The note traces its origins to the OECD's Crypto-Asset Reporting Framework (CARF), developed at the G20's request after tax administrations worldwide noticed that crypto-assets could move across borders outside the reach of existing exchange-of-information regimes such as the Common Reporting Standard and Foreign Account Tax Compliance Act (FATCA).

CARF was endorsed by G20 leaders in 2022 and given further momentum during India's G20 presidency in 2023, with more than 50 jurisdictions, including India, now part of the CARF Group.

CBDT Chairman Ravi Agrawal noted that the framework will help "reinforce India's standing as a pillar of global tax transparency," describing crypto-assets as a fresh challenge for revenue authorities.

Who has to report, and on whom

Legally, the obligation stems from Section 509 of the Income-tax Act, 2025, read with Rules 241 to 244 and Form 167 of the Income-tax Rules, 2026.

A RCASP can be an individual or entity that, as a business, facilitates exchanges between crypto-assets and fiat currency, or between different crypto-assets, including exchanges, brokers, dealers, ATM operators and trading-platform operators.

Notably, the reporting requirement is cross-border in nature: platforms must identify and report users who are tax residents outside India, while foreign RCASPs will reciprocally report Indian residents' crypto holdings back to Indian authorities.

This mirrors how CRS and FATCA already work for traditional bank accounts.

What gets reported, and what is excluded

Covered "Relevant Crypto-Assets" include cryptocurrencies and cryptography-based tokens, but exclude Central Bank Digital Currencies and specified electronic money products such as certain stablecoins.

For each reportable user, platforms must disclose identity details, tax residency, and — where applicable — a Taxpayer Identification Number, along with transaction-level data covering exchanges, transfers and high-value retail payments above $50,000.

Deadlines and penalties

Reporting applies from the calendar year starting 1 January 2026, with statements to be filed electronically in Form 167 by 31 May of the following year — meaning the first filings fall due by 31 May 2027.

Even where no reportable user is identified, platforms must file a nil statement.

Failure to file attracts a penalty of ₹200 for every day of default, while inaccurate reporting or lapses in due diligence can draw a flat penalty of ₹50,000.

Platforms and investors alike would do well to get their documentation in order well ahead of the 2027 deadline.

What it means for investors

The CBDT has been explicit that the note does not introduce a new tax, nor does it pass judgement on the legitimacy or otherwise of transactions in crypto-assets.

For everyday investors, the immediate compliance burden sits with the platforms they use, and no fresh disclosure is demanded of them at this stage.

What changes is visibility: cross-border crypto holdings will increasingly surface in official records, much as offshore bank accounts already do under CRS and FATCA.