Crypto and CBDC Reporting: Income-tax Rules Amended 2026
Why in the news
India widened its financial account reporting rules to cover crypto assets, central bank digital currencies and some e-money products, aiming at tax transparency and cross-border data sharing.
Key facts
- Issuing body: Central Board of Direct Taxes.
- Newly covered: crypto assets, CBDCs and specified electronic money products.
- A relevant crypto asset means one used for payment or investment, excluding CBDCs and specified e-money.
- Specified e-money: digital version of fiat currency, issued against funds, redeemable at face value, used for payments (such as some wallets).
| Framework | Origin | Purpose |
|---|---|---|
| FATCA | U.S. law | Disclosure of accounts held abroad by U.S. taxpayers |
| CRS | OECD | Automatic exchange of account data between countries |
| CARF | OECD | Cross-border reporting of crypto-asset transactions |
Exam angle
- Rules amended: 114F, 114G, 114H.
- CARF is crypto-specific.
- Low-value accounts under the stated threshold may be exempt.