India's tax authority has published a detailed framework for crypto transaction reporting, giving exchanges and wallet providers a new compliance playbook and setting a 2027 deadline for automatic cross-border data sharing. The Central Board of Direct Taxes (CBDT) released a 198-page Guidance Note on July 24, 2026, operationalizing reporting under Section 509 of the Income-tax Act, 2025 and Rules 241–244.
Form 167 and the new reporting template
The guidance introduces Form 167 as the standardized reporting template for crypto transactions, replacing the ad-hoc reporting that had been the norm. Reporting Crypto-Asset Service Providers — or RCASPs — must now collect users' tax residency and taxpayer identification details (TIN) during onboarding or refresh existing records. The form mirrors traditional finance reporting, with cross-border data pipes built in from the start, rather than banning crypto outright.
Who's covered — and who might not be
RCASPs include centralized exchanges, broker-dealers, wallet and custody providers, and marketplace operators that intermediate transactions. Decentralized protocols and non-custodial wallets may be excluded, but the guidance warns they face interpretive risk — meaning the taxman could still come knocking if a platform is deemed to facilitate transactions. The CBDT also requires RCASPs to maintain audit-ready records and furnish annual reports to the Income Tax Department within a prescribed window.
Cross-border data exchange from 2027
India plans to begin automatic cross-border exchange of crypto transaction data under the OECD Crypto-Asset Reporting Framework (CARF) from April 1, 2027. That puts the country on a timeline similar to other major economies adopting the standard. The move signals that New Delhi is leaning into transparency rather than prohibition — a shift from earlier years when a blanket ban was floated.
Public comment window open until August 17
The CBDT opened a public comment period on the draft guidance until August 17, 2026, for stakeholders to flag implementation issues. Exchanges, wallet providers, and industry bodies have less than two weeks to submit feedback. After that, the CBDT will finalize the rules, with the first annual reports expected to be filed in 2027. The clock is ticking.
