India to share cryptocurrency transaction data internationally from 2027, leading to a significant transformation in the tax regulation system

EntryPositionAnalyst · 2026-02-13T17:04:15+00:00

India plans to implement a phased international data sharing system starting April 2027, aimed at enhancing tax transparency and preventing tax evasion in cryptocurrency transactions. New penalties for non-compliance will also be introduced.

EntryPositionAnalyst

2026-02-13 17:04:15

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The Indian government plans to implement a phased data sharing system starting from April 2027 as part of international tax cooperation based on the OECD (Organisation for Economic Co-operation and Development) common reporting framework. Under this timeline, India will actively exchange cross-border cryptocurrency transaction information with international tax authorities, including OECD member countries.

International Data Sharing System Begins in April 2027

India’s international data sharing system to be introduced in 2027 is explicitly outlined in the national budget for fiscal year 2026. With this implementation, cryptocurrency transaction data previously managed independently by each country will transition to a centralized reporting and exchange system through the OECD framework. According to reports by NS3.AI, this initiative aims to enhance tax transparency and prevent international tax evasion, aligning with global regulatory trends.

India Strengthens Penalty System to Enforce Tax Compliance

In conjunction with the new system, India is also strengthening penalties for reporting violations. Failure to meet data reporting obligations will incur a fine of ₹200 per day, and incorrect declarations related to cryptocurrency transactions will be fined ₹50,000. The strict penalty mechanisms to be implemented by this timeline will compel market participants to rapidly improve their tax compliance efforts.

Impact of Enhanced Regulatory Oversight on the Cryptocurrency Sector

At the core of these measures is the goal to ensure tax compliance within India’s cryptocurrency sector and significantly improve regulatory oversight. The international cooperation framework set to fully launch in 2027 will serve not only as an information-sharing platform but also as a more advanced regulatory and monitoring tool. India’s leading role in establishing this new tax system is likely to dramatically increase transparency across the entire digital asset market.

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