India to Implement OECD's Crypto Reporting Framework from Apr '27

India will implement the Organisation for Economic Co-operation and Development's (OECD's) Crypto-Asset Reporting Framework (CARF) from April 1, 2027, bringing offshore cryptocurrency holdings of its residents under the tax net, according to a senior finance ministry official.

- MONIKA YADAV

India is expected to sign the Multilateral Competent Authority Agreement (MCAA), a global framework for automatic exchange of tax information next year, he said.

India had signed an MCAA for financial account information in 2015, but a separate pact under CARF will be required to cover crypto assets, he clarified. Legislative changes and system preparations are already underway to meet the 2027 deadline, he said.

"Once CARF takes effect under the Automatic Exchange of Information, Indian tax authorities will begin receiving details of crypto assets held by residents in foreign exchanges and wallets. For instance, if an exchange is based in the UAE, it will report the data to the UAE tax authority, which in turn will share it with India under the multilateral framework. Residents will be liable to pay tax in India on such income as part of their total taxable income. But relief may be available under Double Taxation Avoidance Agreements where taxes have already been paid abroad," the official added.