India updates tax reporting rules to include crypto assets and CBDCs
India has expanded its global tax reporting framework to include specified crypto-assets, central bank digital currencies, and digital money products under updated FATCA and Common Reporting Standard rules. The Economic Times reported that the Central Board of Direct Taxes (CBDT) has revised Indias implementation guidance for the Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS), bringing specified crypto-assets, central bank digital currencies (CBDCs), and digital money products within the scope of international tax reporting. The updated guidance sets out revised compliance requirements for reporting financial institutions, including banks, mutual funds, insurance companies, custodians, and other investment entities. Under the framework, such entities must identify reportable accounts, verify customers‘ tax residency, and report financial information as part of India’s commitments under the Automatic Exchange of Information (AEOI) framework. In addition, the revised rules require reporting institutions to apply enhanced due diligence to high-value accounts with balances exceeding $1 million. The guidance calls for additional review procedures before such accounts are classified for reporting. The latest changes expand the range of financial products covered under Indias international tax reporting regime as authorities continue updating compliance standards for digital financial assets. High-value accounts will face additional review Alongside the expanded reporting scope, the revised guidance