Key Takeaways
- India will align with OECD’s CARF to bring greater transparency to crypto transactions.
- Residents with overseas crypto assets will be subject to new tax reporting requirements.
- The government plans to sign a new international tax information-sharing agreement (MCAA) in 2026.
India, known for its heavy crypto tax burden and lack of clear crypto regulations, is set to introduce a new crypto reporting model under Organisation for Economic Co-operation and Development (OECD) guidelines.
The OECD is an international organization of 38 democratic countries that collaborates to set global standards and develop policies to promote economic growth, sustainable development, and social well-being.
India To Adopt Global Crypto Tax Rules
According to a report published in Business Standard, India will adopt the Crypto-Asset Reporting Standard (CARF), a global standard for crypto tax reporting developed by the OECD, in April 2027.
The international tax reporting regulations would bring offshore crypto holdings of Indian residents under the tax net.
As part of the new global tax reporting guidelines, the Indian government will sign the Multilateral Competent Authority Agreement (MCAA) next year. The MCAA is a global framework for the automatic sharing of tax data.
The source clarified that even though India signed the 2015 MCAA for bank account information, crypto assets still need a separate agreement under the CARF framework.
The government will reportedly also make key legislative amendments to ensure deployment is completed before the 2027 deadline in April.
India Neglects Regulatory Demand, Instead Calls For More Taxation
The latest report about new global crypto tax rules comes amid an uproar against the government’s conservative crypto policy, with stakeholders demanding clearer regulations.
Yet the government has decided to work on a new tax regime targeting offshore crypto holdings rather than solving the root cause that has forced several traders to trade on offshore exchanges.
India imposed a hefty 30% flat tax on crypto gains in 2022, despite several warnings from stakeholders about its negative impact.
The government also introduced a 1% tax deduction at source (TDS) to track crypto transactions on exchanges, creating another complex tax for exchanges.
In addition to the 30% flat tax on crypto gains, with no option to offset losses, and 1% TDS, crypto exchanges are also forced to pay an 18% service tax, eventually trickling down to crypto traders.
Due to such a conservative tax regime, many crypto companies and traders decided to move offshore to neighboring countries like the UAE, where there is zero crypto tax. Now, the Indian government is also targeting those offshore traders.
While the government’s tax collection might increase due to the new global tax policy, crypto traders continue to suffer from such one-sided policies.











