CBDT Tightens Crypto Tax Reporting Rules, Signals Push for Greater Transparency

Chandani — Mon, 27 Jul 2026 15:51:00 +0000

The new guidance aligns India with the OECD’s Crypto-Asset Reporting Framework, while industry experts see it as a step toward a broader regulatory framework for digital assets.

India has strengthened its oversight of the cryptocurrency sector by introducing detailed tax reporting guidelines for crypto service providers under the Income Tax Act. While the move does not introduce new taxes or regulate digital assets, it marks another step toward greater transparency in the country’s fast-growing crypto ecosystem.

The Central Board of Direct Taxes (CBDT) has released a guidance note explaining how crypto exchanges and other Virtual Digital Asset (VDA) service providers must comply with their reporting obligations.

India adopts global reporting standards

The new guidance operationalises the Organisation for Economic Co-operation and Development’s (OECD) Crypto-Asset Reporting Framework (CARF), an international system designed to improve tax transparency by helping authorities track cryptocurrency transactions across jurisdictions.

By adopting CARF, India joins several countries working to strengthen tax compliance in the digital asset sector.

Focus remains on tax reporting

The CBDT’s latest guidance does not alter India’s existing taxation framework for cryptocurrencies.

Instead, it provides operational clarity on how crypto exchanges and VDA service providers should report transactions under the Income Tax Act, helping authorities improve transparency and monitor taxable crypto activities more effectively.

Broader crypto policy may be taking shape

The development comes shortly after the Parliamentary Standing Committee on Finance recommended that the government examine the need for a comprehensive legal and regulatory framework for virtual digital assets.

Together, the two developments suggest that India is gradually moving toward a more structured approach to regulating the cryptocurrency industry.

Industry welcomes the guidance

Industry leaders have largely welcomed the CBDT’s move, describing it as an important milestone for the digital asset ecosystem.

Edul Patel, CEO of Mudrex, said the guidance strengthens transparency while bringing India’s reporting framework in line with international standards.

According to Patel, stronger reporting requirements could help policymakers design balanced regulations that protect investors while supporting innovation in the sector.

He added that the crypto industry has consistently sought greater regulatory clarity, and the latest guidance represents meaningful progress toward a comprehensive framework.

Exchanges see greater operational clarity

Vimal Sagar Tiwari, Co-Founder of CoinSwitch, also welcomed the guidance, saying it provides much-needed operational clarity for crypto service providers.

He noted that a standardised reporting framework will make it more difficult to underreport or conceal taxable crypto transactions through compliant platforms.

According to Tiwari, improved reporting standards are expected to strengthen transparency, accountability and trust across India’s digital asset ecosystem while benefiting regulators, exchanges and investors alike.

What the guidance means

Although the CBDT’s notification does not introduce new cryptocurrency regulations, it reinforces the government’s focus on improving tax compliance and reporting standards.

With Parliament also examining the need for broader legislation, the latest move is being viewed as another step toward a more comprehensive policy framework for cryptocurrencies in India.

FAQ

What has the CBDT announced?

The CBDT has issued detailed guidance explaining how crypto exchanges and other Virtual Digital Asset service providers must comply with tax reporting requirements under the Income Tax Act.

Does this change India’s crypto tax rules?

No. The guidance does not introduce new taxes. It focuses on improving reporting obligations and tax transparency.

What is the OECD’s Crypto-Asset Reporting Framework (CARF)?

CARF is an international reporting standard developed by the OECD to help tax authorities monitor cryptocurrency transactions and improve cross-border tax compliance.

Does this mean India will regulate cryptocurrencies soon?

The guidance itself is limited to tax reporting. However, along with recent recommendations from the Parliamentary Standing Committee on Finance, it suggests that India may be moving toward a broader regulatory framework for digital assets.

Income Tax Return 2023: Keep these 5 changes in mind while filing ITR, otherwise you will be upset

Pravesh Maurya — Mon, 26 Jun 2023 08:28:24 +0000

If you are a taxpayer and you are going to file your Income Tax Return (ITR), then there are some changes and updates in 2023 that you need to know about. Because, filing ITR with wrong or outdated information also increases the chances of mistakes. These mistakes can trigger a tax audit or investigation by a tax officer. This can lead to additional scrutiny, stress and potential financial liabilities. Let us take a look at the changes you should be aware of while filing ITR for 2022-23.

1. Reporting of Income from Virtual Digital Assets

CA Ajay Bagadia told that VDA i.e. Virtual Digital Assets includes crypto assets. There is taxation, surcharge and cess at the rate of 30 per cent on income generated from the transfer of VDA. It is important to note that while computing such income, you cannot avail deduction for any expenditure, except the cost of acquisition, if applicable.

According to Bagadia, Schedule VDA requires details such as date of acquisition, date of transfer, category of income chargeable to taxation, cost of acquisition in case of gift and consideration received. If your income is from VDA then you cannot file ITR-1 or ITR-4. Instead, ITR-2 or ITR-3 form will have to be filled. Such income can be taxed under business income or capital gains.

2. Details of exit from New Tax Regime

CA Abhinandan Pandey explains that an individual or a Hindu Undivided Family (HUF) has the option to opt for the alternate tax regime under section 115BAC. If the taxpayer has income from business or profession, he can exercise this option, but can withdraw it only once for the previous year, except the year in which it was initially exercised. Once the option is withdrawn, the taxpayer is not eligible to exercise it again under this section, unless he has any income from business or profession. To opt out of the arrangement, the assessee has to submit Form 10-IE electronically through the e-filing portal.

The assessee needs to provide details in this year’s ITR form if he has opted out of section 115BAC in earlier years. If the taxpayer has opted out, then he is required to provide the details of the assessment year.

3. Reporting of turnover from intraday trading

Profit or loss arising from intraday trading, which is treated as a speculative transaction, is subject to taxation under the head business income of capital gains. This year’s ITR form includes a specific section, Part A-Trading Account, where individuals are required to provide separate information in respect of their intraday trading activities. The ITR form now requires details such as turnover from intraday trading and income from intraday trading, which has been transferred to profit and loss account.

4. Donation Reference Number details for claiming 80G deduction

If you are claiming deduction under section 80G, it is necessary to have donation receipt and donation certificate in Form 10BE readily available. To claim the deduction, the details of your donation have to be given in the applicable ‘Schedule 80G’ in the ITR form.

CA Santosh Mitra informed that a new column has been added in ‘Table D’ in the current year’s ITR form. This column requires disclosure of ARN (Donation Reference Number) for donations made to institutions, where 50 per cent deduction is allowed subject to qualifying limits. The ARN should be derived from the donation certificate issued in Form 10BE by the institutions receiving the donation and the same should be mentioned in the ITR.

5. Disclosure of income

Section 89A provides tax relief on income from retirement benefit accounts held in specified countries by the authorities. In case a person has claimed such relief, he has to furnish the relevant information in the Schedule Salary.

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