NRI Tax Residency Crypto: What Every Non‑Resident Indian Needs to Know

When dealing with NRI tax residency for crypto, the set of rules that decide how non‑resident Indian citizens are taxed on cryptocurrency gains. Also known as NRI crypto tax, it covers residency status, source‑based taxation, and reporting obligations under Indian law.

NRI tax residency crypto sits at the intersection of three key concepts. First, crypto taxation, the broader framework that treats digital assets like any other capital asset for tax purposes defines how gains, losses, and income from tokens are calculated. Second, the Indian Income Tax Act, the legal code that dictates tax rates, filing thresholds, and the definition of a resident determines which portion of crypto income is taxable in India versus the country of residence. Finally, the Double Taxation Avoidance Agreement (DTAA), bilateral treaties that prevent the same income from being taxed twice can provide relief for NRIs who earn crypto profits abroad. Together, these entities create a web where residency status influences tax rates, the source rule influences treaty benefits, and reporting requirements shape compliance risk.

Practical Implications and What to Watch For

Understanding NRI tax residency for crypto means answering three practical questions. Who counts as an NRI? The Income Tax Act uses stay‑duration tests—typically more than 182 days outside India—to deem a person non‑resident, which directly affects the taxability of crypto gains. What tax does an NRI owe on crypto? Capital gains tax applies, with short‑term rates matching ordinary income brackets and long‑term rates at 20% plus surcharge, but only on gains deemed sourced in India. How does the DTAA change the picture? If a treaty exists with the country of residence, it may reallocate taxing rights, allowing the foreign jurisdiction to tax the gain while India offers a credit. Ignoring any of these pieces can trigger penalties, as highlighted by recent enforcement actions where the Indian tax authority pursued undisclosed crypto earnings from NRIs. Staying ahead means tracking residency days, retaining transaction records on a blockchain explorer, and filing Form 3CA/3CB if needed.

Below you’ll find a curated set of articles that break down each of these elements. From deep dives into the Indian tax code’s treatment of digital assets to step‑by‑step guides on claiming treaty benefits, the collection equips you with the knowledge to stay compliant and avoid costly surprises. Dive in to see how the rules apply to stablecoins, DeFi yields, and cross‑border token swaps, and discover actionable tips for filing your crypto taxes correctly as an NRI.