Centre Tightens Crypto Rules Under Income Tax Act. Is Broader Policy Next?
The Indian government has introduced new tax reporting guidelines for cryptocurrency exchanges, aligning with the OECD's Crypto-Asset Reporting Framework. While not a direct regulation of crypto assets, industry experts view this as a step toward a more structured and transparent regulatory environment.
Why it matters
This move signals India's intent to integrate digital assets into its formal financial oversight and tax compliance systems.
India has taken another step towards tightening oversight of the cryptocurrency sector, this time through tax reporting rather than regulation.The Central Board of Direct Taxes (CBDT) has issued a detailed guidance note explaining how crypto exchanges and other virtual digital asset (VDA) service providers must comply with their reporting obligations under the Income Tax Act. The move operationalises the OECD's Crypto-Asset Reporting Framework (CARF), an international standard designed to improve tax transparency by enabling authorities to track crypto transactions more effectively.The guidance comes just days after the Parliamentary Standing Committee on Finance urged the government to examine the need for a comprehensive statutory and regulatory framework for virtual digital assets.
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