India, July 27 -- In a bid to address the taxation related complexities of crypto trading in India, the Central Board of Direct Taxes (CBDT) issued new guidelines clarifying the reporting and due diligence norms for crypto exchanges and other service providers.

Crypto-Asset Reporting Framework (CARF), which applies to all crypto transactions beginning calendar year 2026, highlights mandates for crypto service providers to identify trading users, establish their tax residency and file details of specified transactions through Form 167 by May 31 of the following year.

The requirements are included under Section 509 of the Income Tax Act, 2025, and Rules 241 to 244 of the Income Tax Rules, 2026.

In essence, the framework seeks to address ...