India's CBDT issues new crypto tax guidance for platforms and exchanges

The Central Board of Direct Taxes (CBDT) has released a detailed guidance note for crypto‑asset platforms operating in India and for foreign exchanges that serve Indian users. The note clarifies the reporting and tax obligations under the Income Tax Rules introduced in the February 2026 Union Budget.

It places the primary compliance burden on Reporting Crypto‑Asset Service Providers (RCASPs), not on individual investors, and outlines how these providers must report transactions that cross jurisdictions. The guidance references the Common Reporting Standard (CRS) and related OECD materials to aid reporting financial institutions.

Key provisions include a definition of the "crypto‑asset user" based on the party benefiting from the transaction and a reporting requirement for transfers exceeding $50,000 when a provider acts as an agent for a customer or merchant. Such transfers must be reported as "Reportable Retail Payment Transactions" with the appropriate user identified.