Section 509
Section 509: obligation to furnish information on crypto-asset transactions
Section 509 requires prescribed "reporting entities" dealing in crypto-assets to periodically report transaction information to the income-tax authorities, mirroring the reporting framework used for other specified financial transactions.
This explanation is AI-assisted and pending review by our CA/CS team. It is general information, not professional advice - always cross-check against the bare law text above or talk to our tax team for guidance specific to your situation.
Who must report, and what
Any person being a reporting entity, as may be prescribed, in respect of a crypto-asset, must furnish information on a transaction of such crypto-asset in a statement, for such period, within such time, in such form and manner, and to such income-tax authority, as may be prescribed.
Fixing defects in the statement
If the prescribed income-tax authority considers the statement defective, they may intimate the defect and give an opportunity to rectify it within thirty days (or a further allowed period). If not rectified in time, the Act applies as if the person had furnished inaccurate information.
Notice for non-filing, and correcting later-discovered inaccuracies
If the statement is not furnished within the specified time, the prescribed income-tax authority may serve a notice requiring it within a period not exceeding thirty days from service of the notice.
If a person, having furnished a statement, later discovers any inaccuracy, they must inform the prescribed income-tax authority within ten days and furnish correct information as may be prescribed.
Rule-making powers
The Central Government may, by rules, prescribe the persons to be registered with the prescribed income-tax authority, the nature and manner of maintaining the required information, and the due diligence to be carried out for identifying any crypto-asset user or owner.
Meaning of "crypto-asset"
"Crypto-asset" has the meaning assigned to it in section 2(111)(d) of the Act.
Frequently asked questions
Who is required to report crypto-asset transactions under Section 509?
A person who is a prescribed "reporting entity" in respect of a crypto-asset.
What happens if a crypto-asset reporting statement is inaccurate and not corrected in time?
If a defect is intimated and not rectified within thirty days (or the further allowed period), the Act treats the person as having furnished inaccurate information in the statement.
Where is "crypto-asset" defined for this section?
Section 509(6) points to the definition in section 2(111)(d) of the Act.
Related sections
Want this applied to your actual filing, not just explained?
Talk to our tax team about this sectionLast updated 9 September 2026