India expands tax reporting rules to cover certain crypto assets

India’s Central Board of Direct Taxes has revised its global tax reporting framework to bring certain crypto assets, central bank digital currencies, and digital currency products within the scope of the Foreign Account Tax Compliance Act and the Common Reporting Standard, according to The Economic Times, as cited by ChainCatcher. The update also tightens due diligence requirements for financial institutions. Under the revised framework, banks, mutual funds, insurance companies, custodians, and other investment entities are given guidance on identifying reportable accounts, verifying tax residency status, and filing financial information. The change broadens the reporting perimeter beyond traditional financial accounts and adds compliance expectations for institutions handling covered digital assets. The report said financial institutions must also apply enhanced due diligence to high-value accounts with balances above $1 million. The move adds a more detailed compliance layer to India’s tax information reporting system and sets out how covered entities should handle account classification and disclosure obligations under the updated rules.