NRI Crypto Tax – What Every Non‑Resident Indian Must Know

When dealing with NRI crypto tax, the tax obligations that Non‑Resident Indians face on cryptocurrency transactions. Also known as Non‑Resident Indian crypto tax, it sits at the intersection of Indian tax law and global tax residency standards. Understanding this framework helps you avoid costly mistakes and stay on the right side of both Indian and foreign tax authorities.

One core piece of the puzzle is capital gains tax, the tax levied on profit from selling crypto assets. For NRIs, the rate depends on whether the gain is classified as short‑term (held less than 36 months) or long‑term, and the applicable slab from the Indian Income Tax Act. Short‑term gains are taxed like ordinary income, while long‑term gains enjoy a reduced 20% rate with indexation benefits. Knowing which side of the line your trade falls on can save you hundreds of dollars.

Key Considerations for NRIs

Another crucial entity is the double taxation treaty, agreements India has with many countries to prevent the same income being taxed twice. If you’re a tax resident of a country that has such a treaty with India, you can often claim a credit for the tax paid in India, reducing your overall burden. However, the treaty’s provisions vary, so you need to check the specific article covering “income from virtual assets” for your jurisdiction.

Tax residency itself is a defining factor. Indian law says you are a resident if you spend 182 days or more in India during a financial year, or if you meet the “stay and purpose” test over a four‑year span. Once you cross that threshold, your worldwide crypto earnings become taxable in India, regardless of where the exchange is based. For NRIs who split time between India and another country, maintaining clear records of days spent in each location is essential to prove your residency status.

Practical compliance steps often start with the right forms. While Indian residents file ITR‑2 or ITR‑3, NRIs usually use ITR‑4 (presumptive taxation) if eligible, but must still disclose crypto income in Schedule CG. Some offshore brokers also issue a Form 1099‑DA, the US reporting form for digital asset transactions, which can be used as supporting documentation when reconciling Indian filings. Aligning these documents with the Indian tax return reduces the risk of a notice from the Income Tax Department.

Putting it all together, NRI crypto tax touches on capital gains, residency, treaty benefits, and proper reporting forms. Below you’ll find a curated set of articles that break down each piece, walk you through real‑world examples, and give you actionable tips to stay compliant while still enjoying the upside of crypto investing.