Income Tax Department (ITD) Revamps Foreign Tax Information Exchange Framework Effective July 1

Exam-focused facts from the 26 May 2026 current affairs briefing.

Key facts

The Income Tax Department (ITD) has revamped its framework for exchanging tax information with foreign authorities to curb cross-border tax evasion.
The new framework mandates that information must be shared within 15 days from the date of request if the data is available with the ITD.
Tax officers are required to submit an interim report within 15 days if full information cannot be provided immediately, detailing progress and expected timelines.
India will commence the automatic exchange of information regarding crypto and other digital assets starting from April 1, 2027.
The framework aligns India with the Organisation for Economic Co-operation and Development (OECD) Crypto-Asset Reporting Framework (CARF).