The Central Board of Direct Taxes (CBDT) of India has proposed a new common tax return (ITR) that largely integrates existing income tax returns and the proposal also seeks information on Indians residing abroad about any business connections they may have in India and whether the entity has a significant economic presence (SEP) in India, especially if they businesses from which they derive income. India introduced what is essentially a foreign company business tax equalisation tax in 2016, with the aim of taxing foreign e-commerce companies on digital transactions or income made in India. the CBDT has invited stakeholders and the public to comment on the draft by 15 December 2022.

Rajat Mittal, a tax advisor to the Indian Supreme Court advising cryptocurrency businesses, said this could have an impact on any cryptocurrency exchange that is not registered in India but still has an Indian trader. It was reported yesterday that India's CBIC had asked cryptocurrency exchanges to provide details in order to work out the taxation.