Archive · 30 Jul 2026
CBDT's New Crypto Reporting Framework Explained: CARF Impact
India has a new rule that says crypto exchanges must keep track of every trade people do on their platforms.
They have to find out where each user lives for tax purposes and send that info to the tax office.
The rule also says exchanges must check that the information is correct and keep records.
If they don’t do this, they can be fined.
People who trade crypto don’t have to file new tax forms, but they should keep their own records so they match what the exchange reports.
This helps the government see who is earning money from crypto and make sure taxes are paid.
CARF is a global crypto tax transparency framework adopted by India via the Income‑tax Act 2025.
Crypto exchanges (RCASPs) must collect user data, determine tax residency, and file Form 167 with transaction details.
Reporting expands beyond KYC to include tax self‑certifications, controlling‑person checks, and ongoing compliance.
Statutory penalties: ₹200 per day for missing statements, ₹50,000 for uncorrected inaccurate info.
Individual investors face no new tax filing duties but must keep detailed records to match exchange reports.
- Who
- Indian crypto exchanges (RCASPs), investors, CBDT, OECD, G20
- What
- Implementation of CARF reporting framework requiring exchanges to report crypto transactions to tax authorities
- When
- Effective under Income-tax Act, 2025
- Where
- India and participating jurisdictions worldwide
- Why
- To improve tax transparency and enable automatic information exchange on crypto transactions
- Framework
- CARF (Crypto-Asset Reporting Framework)
- Adopted by India
- Income-tax Act, 2025
- Reporting Form
- Form 167
- Penalties
- ₹200/day for missing statements; ₹50,000 for inaccurate info
- Affected Parties
- Crypto exchanges (RCASPs) and investors