New Delhi: The Central Board of Direct Taxes (CBDT) has issued a guidance note specifying that crypto exchanges and other intermediaries will have to report all transactions on their platforms to the Income Tax department.

The objective of the guidance note on crypto asset reporting obligations is to bridge the information gap that existed because such assets could be transferred or held outside the traditional financial system.

It is more procedural in nature while ensuring that crypto transactions become part of a transparent global tax reporting ecosystem.

The note intends to explain the reporting obligations of Reporting Crypto-Asset Service Providers (RCASP) in line with the Crypto-Asset Reporting Framework (CARF) developed jointly by…