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 a new guidance outlining the reporting and due diligence obligations of crypto exchanges and other service providers.

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

The requirements will be introduced under Section 509 of the Income Tax Act, 2025, and Rules 241 to 244 of the Income Tax Rules, 2026.

The framework seeks to address the limite...