New Delhi, July 26, 2026 (Yes Punjab News)
The Central Board of Direct Taxes (CBDT) has issued a detailed guidance note to help crypto-asset service providers understand their tax reporting obligations under the Income Tax Rules, 2026.
The guidance is aimed at Indian crypto platforms and foreign exchanges operating in India and explains the procedures for reporting crypto transactions and related information requirements.
According to the CBDT, the primary responsibility for compliance lies with Reporting Crypto-Asset Service Providers (RCASPs) rather than individual investors. The note also provides clarity on reporting mechanisms for entities involved in cross-border crypto transactions following provisions introduced in the Union Budget presented in February 2026.
The CBDT said the guidance note simplifies the reporting obligations of Reporting Financial Institutions (RFIs) under the notified rules. It also refers to the Common Reporting Standard (CRS) framework developed with the participation of jurisdictions, including India, in collaboration with the Organisation for Economic Co-operation and Development (OECD).
The note clarifies that a crypto service provider should not consider a person as the crypto-asset user if that person is acting only as an agent, custodian, nominee, signatory, investment adviser or intermediary for another individual or entity.
“In such cases, the individual or entity on whose behalf the Crypto-Asset User relationship exists should be treated as the Crypto-Asset User, and identification should be carried out on that basis,” the CBDT said.
The guidance also explains reporting requirements for crypto payments exceeding $50,000. If a service provider transfers crypto assets from a customer to a merchant while acting as the customer’s agent, the transaction must be reported as a “Reportable Retail Payment Transaction”.
However, if the service provider acts as the merchant’s agent, the transaction will be reported differently, with the merchant’s customer being treated as the crypto-asset user for reporting purposes.
The CBDT note further provides clarity on situations involving multiple jurisdictions, stating that the jurisdiction with the strongest link should be considered the primary reporting jurisdiction.
A set of frequently asked questions has also been included to make the compliance requirements easier for crypto service providers to understand and implement.
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