CBDT amends Income Tax Rules 114F 114G and 114H related to reporting financial institutions and their obligations
CBDT has by notification no. 19/2026 dated 05.03.2026 notified Income-tax _________ (Amendment) Rules, 2026 amending Rule 114F, Rule 114G and Rule 114H of Income Tax Rules, 1962.
A Reporting Financial Institution means a financial institution including its branches which are located in India. Rule 114G provides for information to be maintained and reported and Rule 114H provides for Due Diligence Requirement for a reportable account.
Depository Account
It has bene provided that a “depository account” shall also include an account or notional account that represents all specified electronic money products held for the benefit of a customer; and also an account that holds one or more central bank digital currencies for the benefit of a customer’
Exclusion
The following account has been excluded from Rule 114F:
a depository account, other than U.S. reportable account, which represents all specified electronic money products held for the benefit of a customer, if the rolling average ninety-day end-of-day aggregate account balance or value during any period of ninety consecutive days did not exceed USD 10,000 at any day during the calendar year or other appropriate reporting period.
Financial Asset
It has been further provided that for an account other than a U.S. reportable account, “financial asset” shall also include any interest (including a futures or forward contract or option) in a relevant crypto-asset.
Depository Institution and Investment Entity
It has been provided that for an account other than a U.S. reportable account, “depository institution” shall also include an entity that holds specified electronic money products or central bank digital currencies for the benefit of customers.
Investment Entity
An account other than U.S. reportable account, the provisions of item (iii) shall apply with the effect that the phrase “financial assets” shall be substituted by the phrase “financial assets or relevant crypto-assets”.
Crypto-asset
The term “relevant crypto-asset” has bene defined to mean any crypto-asset–– (a) that is not a Central Bank Digital Currency; or (b) that is not a specified electronic money product; or (c)for which the reporting crypto-asset service provider has adequately determined that it cannot be used for payment or investment purposes;”
Limited Purpose
It has been provided that for the purposes of rule 114F, 114G and 114H, exchange of any information in respect of any transaction in relevant crypto-assets is only for the limited purposes of administration of taxes by the relevant jurisdiction.”.
Download CBDT Notification No. 19/2026 Click Here >>
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