India Expands Crypto Tax Reporting, Small Balances Get Exemption

For most retail holders, the effect is more paperwork than new liability. Institutions must apply enhanced due diligence only for accounts exceeding $1 million. Below that threshold, the changes mostly mean your exchange or custodian will collect and verify more information about your holdings. There is a carve-out for smaller e-money balances: if the rolling 90-day average end-of-day balance stays under $10,000, that account is exempt from the new reporting requirement.

The notification aligns India’s framework with the OECD’s Crypto-Asset Reporting Framework and updates to the Common Reporting Standard. The Indian move comes as other jurisdictions take different paths. The US CLARITY Act remains stalled, a contrast that could affect where crypto firms choose to operate.

The next concrete date for market participants is the April 2027 reporting deadline for the first batch of data collected under the new rules.