Reporting Crypto-Asset Service Providers (RCASPs)—exchanges, custodians, and brokers—must capture transaction details including user identification, transaction amounts, dates, and counterparties, creating a transparent record for tax compliance.
India began imposing penalties for non-compliance in April 2026 (₹200 per day for missing reports, ₹50,000 for incorrect data). From April 1, 2027, India will automatically share crypto account information with 150+ CARF-participating countries under the global standard.
The existing 30% tax on all crypto gains (regardless of holding period or income slab) and 1% TDS on transactions above ₹10,000 remain in place for FY 2026-27, but now with far better tax department visibility into unreported activity.
Compliance just became non-optional. While tax rates haven't changed, the CARF reporting regime means that unreported gains are increasingly likely to surface in tax audits, pushing India's crypto user base toward formal ITR filing and proper record-keeping.
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