India expands global tax reporting rules to cover crypto assets and central bank digital currencies

Comparatively, according to the Economic Times of India, India's Central Direct Taxation Commission has revised the global tax reporting framework to expand the scope of application of the Foreign Account Tax Compliance Act and common reporting standards to specific crypto assets, central bank digital currencies, and digital currency products, while also tightening due diligence requirements for financial institutions.

The updated compliance framework provides banks, mutual funds, insurance companies, custodians, and other investment entities with guidelines for reporting account identification, tax residency identification, and financial information reporting. Financial institutions are also required to conduct enhanced due diligence on high-value accounts with balances greater than $1 million.