India Expands Income Tax Reporting to Include Crypto Assets and Digital Wallets

The Indian government has expanded income tax reporting rules effective January 1, 2026, to include crypto-assets, central bank digital currencies (CBDCs) like the Digital Rupee, digital wallets, and specified electronic money products. Financial institutions, banks, and crypto service providers must report customer holdings and transactions under the amended Income Tax Rules. These changes align India’s tax framework with global standards to enhance transparency and monitor digital money flows, with mandatory reporting triggered for wallet balances exceeding approximately Rs 8.3 lakh (USD 10,000).