The Central Board of Direct Taxes (CBDT) has introduced the Reporting Crypto-Asset Service Provider (RCASP) framework to establish a structured reporting system for crypto-asset transactions in India. The framework is designed to improve tax compliance by requiring eligible crypto-asset service providers and exchanges to submit annual transaction reports to the Income Tax Department.
The RCASP framework aligns India's reporting standards with the internationally recognized Crypto-Asset Reporting Framework (CARF), supporting greater transparency in the reporting of digital asset transactions. By introducing standardized reporting obligations, the framework is expected to enhance the verification of crypto-related tax information and strengthen oversight of taxable crypto activities.
Implemented under Section 509 of the Income-tax Act, 2025, read with Rules 241 to 244 of the Income-tax Rules, 2026, and supported by Form 167, the framework places defined compliance responsibilities on reporting crypto-asset service providers. The reporting mechanism is intended to facilitate accurate tax matching, reduce instances of under-reporting, and improve the detection of tax evasion involving crypto transactions.