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India expands tax reporting rules to cover specific crypto assets and CBDCs

India expands tax reporting rules to cover specific crypto assets and CBDCs

A revised CBDT framework brings more digital financial products into FATCA and Common Reporting Standard reporting and adds enhanced checks for high-value accounts above $1 million.

Fact Check
The core claim is strongly corroborated. CAalley reports the CBDT amended Rules 114F, 114G and 114H via the Income-tax (Amendment) Rules, 2026, bringing relevant crypto-assets, CBDCs and specified electronic money products into FATCA and OECD CRS reporting. The official CBDT Guidance Note on FATCA and CRS (incometaxindia.gov.in) confirms crypto-assets fall within the framework. Coinpedia and crypto.news both confirm the enhanced due diligence requirement for high-value accounts exceeding $1 million. Every element of the claim, the framework revision, coverage of crypto assets and CBDCs, and the $1 million high-value account threshold, is supported by these sources.
Summary

India has widened its global tax reporting framework to include specified crypto-assets, central bank digital currencies and digital money products under FATCA and the Common Reporting Standard. Revised guidance from the Central Board of Direct Taxes requires banks, mutual funds, insurers, custodians and other reporting financial institutions to identify reportable accounts, verify customers’ tax residency and report financial information under the Automatic Exchange of Information framework. Accounts with balances above $1 million will face enhanced due diligence before classification for reporting. The move adds another compliance layer after recent Indian measures aimed at tightening oversight of crypto transactions, offshore activity and large over-the-counter trades.

Terms & Concepts
  • CBDCs: Digital currencies issued by central banks.
  • FATCA: A U.S. tax reporting regime that requires foreign financial institutions to identify and report certain accounts.
  • Common Reporting Standard: An international framework for automatically exchanging financial account information between tax authorities.