India's Central Direct Tax Commission revises tax reporting framework to cover cryptocurrency assets and central bank digital currencies
According to the Economic Times of India, the Central Direct Taxation Commission of India has revised the global tax reporting framework, expanding the scope of application of the Foreign Account Tax Compliance Act and the Common Reporting Standards to specific cryptocurrency assets, central bank digital currencies, and digital currency products, and tightening due diligence investigation requirements for financial institutions. The updated compliance framework provides reporting account identification, tax residency verification, and financial information declaration guidelines for banks, mutual funds, insurance companies, custodians, and other investment entities. Financial institutions are required to conduct enhanced due diligence on high-value accounts with balances exceeding $1 million.