CBDT Issues Guidance Note on Crypto-Asset Reporting Under Income Tax Act, 2025:

The Foreign Tax & Tax Research Division of the Central Board of Direct Taxes (CBDT) under the Ministry of Finance (Department of Revenue) has released a guidance note on 'Crypto-Asset Reporting Obligations' under Section 509 of the Income Tax Act, 2025.

These guidelines have been developed for the Reporting Crypto-Asset Service Providers (RCASPs) to adhere to the reporting obligations under Section 509 of the Income Tax Act, 2025, and under Rules 241 to 244 and Form 167 of the Income Tax Rules, 2026. The guidance note explains the reporting requirements of RCASPs contained in the relevant rules announced by the government.

As per the guidance note, the Crypto-Asset Reporting Framework (CARF) has been jointly formed by participating jurisdictions, including India, working with the OECD, the Commentary on CARF, and other relevant materials. It has been explicitly clarified that the instructions and frequently asked questions (FAQs) specified in the guidance note are only for guidance purposes and do not count as legal advice. The details mentioned in the note can be changed with an amendment in law. If there is any contradiction between the note and the official tax laws, then the official government laws will always override.

The guidance note reads, "The purpose of the Guidance Note and FAQs is only to facilitate the RCASPs in complying with the relevant provisions of the Income-tax Act, 2025 and the Income-tax Rules, 2026, and is limited to exchange of information for the limited purposes of administration of taxes by the relevant jurisdiction, as stated in Rule 244 (14) of Income-tax Rules, 2026."

Refer to the official guidance note PDF for complete information.