CBDT Issues Crypto Reporting Guidance: Exchanges Face Strict OECD Alignment

The Central Board of Direct Taxes released a 198-page guidance note outlining crypto reporting obligations for Indian platforms on July 27, 2026. The new framework enforces compliance under Section 509 of the Income-tax Act, 2025, alongside Rules 241 to 244 and Form 167 of the Income-tax Rules, 2026. This initiative operationalises India's adoption of the Organisation for Economic Co-operation and Development's Crypto-Asset Reporting Framework. CBDT Chairman Ravi Agrawal emphasized that these rules directly target tax evasion while safeguarding the national revenue base against unregulated digital asset transfers.

The standard applies to Reporting Crypto-Asset Service Providers, which must verify user identities and log specified transaction details. Tax authorities will collect this data and automatically share it with foreign jurisdictions under international tax transparency agreements. CBDT Member Prasenjit Singh stated that crypto-assets previously escaped reporting mechanisms like the Foreign Account Tax Compliance Act and Common Reporting Standard. India actively developed these standards through the Global Forum's CARF Group and OECD Working Parties. The guidance clarifies that compliance obligations do not alter the legal permissibility or existing tax rates on digital assets.

Tax experts clarified that individual investors face no immediate additional tax filing forms under this guidance note. However, users must maintain meticulous records of wallet movements, purchases, sales, and exchange statements to match centralized database records. Senior tax advisors highlighted that cross-border transaction visibility will drastically reduce the scope for off-market transfers. The primary mandate establishes structured tracking equivalent to traditional banking networks, giving Indian revenue authorities direct access to exchange-level data starting next year.