TaxTMI 
TaxTMI 
Due diligence procedures under section 509.
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.... point there is a change of circumstances with respect to an individual crypto-asset user that causes the reporting crypto-asset service provider to know, or have reason to know, that the original self- certification is incorrect or unreliable, then the reporting crypto-asset service provider- (i) shall not rely on the original self-certification; (ii) shall obtain a valid self-certification, or a reasonable explanation; and (iii) the documentation supporting the validity of the original self-certification, as may be appropriate. (3) For the purposes of determining whether- (a) the entity crypto-asset user is a reportable user; or (b) an entity, other than an excluded person or an active entity, with one or more controlling persons who are the reportable persons, the following procedures shall apply :- (i) when establishing the relationship with the entity crypto-asset user, or with respect to pre- existing entity crypto-assets users within twelve months on and from the 1st January, 2025, the reporting crypto-asset service provider shall- (A) obtain a self-certification that allows the reporting crypto-asset....
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.... controlling person is a reportable person, a reporting crypto-asset service provider shall rely on a self-certification from the entity crypto-asset user or such controlling person that allows the reporting crypto-asset service provider to determine the residence(s) of the controlling person for tax purposes and confirm the reasonableness of such self-certification based on the information obtained by the reporting crypto-asset service provider, including any documentation collected pursuant to the Anti Money Laundering or Know Your Customer Procedures. (7) If at any point, there is a change of circumstances with respect to an entity crypto-asset user or its controlling persons that causes the reporting crypto-asset service provider to know, or have reason to know, that the original self- certification is incorrect or unreliable, then the reporting crypto-asset service provider- (a) shall not rely on the original self-certification; (b) shall obtain a valid self-certification, or a reasonable explanation; and (c) the documentation supporting the validity of the original self-certification, as may be appropriate. (8) A self-certification provided by....
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....igations set out in this rule, but such obligations remain the responsibility of the reporting crypto-asset service provider. (12) A reporting crypto-asset service provider shall maintain all documentation and data for a period of not less than seven tax years after the end of the period within which the reporting crypto-asset service provider shall report the information required to be reported pursuant to rule 243. (13) (a) For the purposes of sub-rule (2),- (i) where an individual is resident for tax purposes in two or more countries or territories outside India, all such country(s) or territory(s) of residence are to be declared in a self-certification and the reporting crypto- asset service provider shall treat the individual crypto-asset user as a reportable user in respect of each such country or territory outside India; (ii) a reporting crypto-asset service provider is considered to have confirmed the "reasonableness" of a self- certification if, in the course of establishing a relationship with an individual crypto-asset user and upon review of the information obtained in connection with the establishment of the relationship (including any documenta....
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....to-asset service provider may not rely on documentation, if the documentation contains information that is inconsistent with the claim of the person as to its status, the reporting crypto-asset service provider has other information that is inconsistent with the status of the person, or the documentation lacks information necessary to establish the status of the person; (x) the expression "change of circumstances" includes any change that results in the addition of information relevant to the status of an individual crypto-asset user or otherwise conflicts with the status of such user, or any change or addition of information to any profile associated with such individual crypto-asset user, if such change or addition of information affects the status of the individual crypto-asset user; (xi) a change of circumstances affecting the self-certification provided to the reporting crypto-asset service provider will terminate the validity of the self-certification with respect to the information that is no longer reliable, until the information is updated; (xii) where a change of circumstances occurs, the reporting crypto-asset service provider shall not rely on....
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....umentation on file to supplement the information missing from the self-certification due to the error and the documentation relied upon to cure the inconsequential error shall be conclusive. (b) For the purposes of sub-rule (3),- (i) "publicly available" information includes information published by an authorised government body of a country or territory, such as- (A) information in a list published by a tax administration; or (B) information in a publicly accessible register maintained or authorised by an authorised government body of such country or territory; or (C) information disclosed on an established securities market; (ii) if an entity is subject to tax as a resident in more than one country or territory outside India, all country(s) or territory(s) of residence are to be declared in a self-certification and the reporting crypto-asset service provider shall treat the entity crypto-asset user as a reportable user in respect of each such country or territory outside India; (iii) reporting crypto-asset service provider is considered to have confirmed the "reasonableness" of a self-certification if, in the course of esta....