CBDT’s revises FATCA and CRS guidance: Scope expanded, new reporting requirements and compliance focus

In brief

The Central Board of Direct Taxes (CBDT) has issued a Guidance Note (Guidance Note) and Frequently Asked Questions (FAQs)¹ on the Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS) to update and consolidate India’s framework for automatic exchange of financial account information. The Guidance Note replaces and builds on the earlier Guidance Note on FATCA and CRS dated 30 November 2016² (2016 Guidance) by aligning the regime with the Income-tax Act, 2025 (2025 Act); Income-tax Rules, 2026 (2026 Rules); and the global CRS framework of the Organisation for Economic Co-operation and Development (OECD) updated in 2025 (CRS 2025). It also reflects newer developments, such as specified electronic money products (SEMP); central bank digital currencies (CBDCs); relevant crypto assets; enhanced reporting requirements under Form 166; and stronger expectations around data quality, Tax Identification Number (TIN) reporting and compliance monitoring.