Income-tax (Amendment) Rules, 2026: Extension of Reporting Framework to Crypto-Assets and Central Bank Digital Currencies, New Delhi, dated 5th March 2026

(Central Board of Direct Taxes, Notification No. 19/2026 [G.S.R. 158(E)]) The CBDT, exercising powers under Section 295 read with Section 285BA of the Income-tax Act, 1961, amended Rules 114F, 114G, and 114H of the Income-tax Rules, 1962 with effect from 1st January 2026, to align India’s financial account reporting framework with the OECD’s updated Common Reporting Standard and the Crypto-Asset Reporting Framework. The amendments expand the definition of ‘financial asset’ and ‘depository account’ under Rule 114F to expressly include relevant crypto-assets, specified electronic money products, and central bank digital currencies, and introduce corresponding due diligence and reporting obligations for Reporting Financial Institutions in respect of such assets.

The amendments to Rules 114G and 114H significantly enhance the reporting obligations of financial institutions, requiring them to report self-certification status, joint account details, account type, and the roles of controlling persons and equity interest holders in respect of reportable accounts other than U.S. reportable accounts. Institutions are additionally required to obtain taxpayer identification numbers and dates of birth while updating pre-existing account information, in alignment with the Prevention of Money-Laundering Act, 2002.

Importantly, a new sub-rule provides that gross proceeds from the sale or redemption of financial assets are not required to be separately reported where such proceeds are already being reported under the Crypto-Asset Reporting Framework, thereby preventing duplicate reporting.

The notification expressly clarifies that information exchanged in respect of crypto-asset transactions is to be used solely for the limited purposes of tax administration by the relevant jurisdiction.