Are you an Indian citizen living abroad and wondering how your crypto earnings will be taxed back home? The short answer: there are no crypto tax exemptions for NRIs, and the flat 30% rate applies just like it does for residents. Still, the rules are full of nuances-residency status, source of income, and recent amendments can change what you owe. This guide walks you through the current Indian crypto tax framework, highlights where (if anywhere) you can claim relief, and gives practical steps to stay compliant.

Quick Takeaways

• All crypto capital gains for NRIs are taxed at a flat 30% rate, regardless of holding period.
• Only the purchase price is deductible; transaction fees, storage costs, and other expenses cannot be offset.
• Crypto received as mining rewards, gifts, or airdrops is taxed at regular income‑tax slabs, not the flat 30%.
• Section115F long‑term capital‑gain exemptions do NOT apply to crypto.
• Residency rule changes effective April2026 can shift global crypto gains into Indian tax jurisdiction if you spend 120days or more in India and earn over ₹15lakhs.

1. The Indian Crypto Tax Landscape

In 2022 India introduced a dedicated tax regime for Virtual Digital Assets (a term that covers cryptocurrencies, NFTs and tokenized assets). The framework was refreshed in April2025, but the core rules stayed the same:

• Capital gains from the sale of any VDA are taxed at a flat 30%.
• No distinction between short‑term and long‑term gains.
• Only the cost of acquiring the asset can be deducted.
• A 1% Tax Deducted at Source (TDS) under Section 194S kicks in when a single sale exceeds ₹50,000 (or sometimes ₹10,000). Exchanges must remit this TDS to the government.

The law treats crypto the same for residents and non‑residents, but your residency status decides whether global gains are in scope.

2. How NRIs Are Taxed

A Non‑Resident Indian (NRI) (an Indian citizen who does not meet the Indian residency criteria for tax purposes) is taxed only on income that is deemed to arise in India. For crypto, the definition of “Indian source” is still fuzzy, but two practical points emerge:

1. If you trade on an Indian exchange, the income is considered Indian‑sourced and therefore taxable.
2. Trades on foreign platforms are generally viewed as foreign‑sourced, and an NRI would not owe Indian tax unless the new residency rule pulls you into resident status.

When crypto is acquired without purchase consideration-such as mining, airdrops, or gifts-the amount is treated as ordinary income. That income is then taxed at your applicable slab rate (5%‑30% depending on total earnings), which can be higher or lower than the flat 30%.

3. Exemptions and Benefits: What’s Available?

Unlike traditional investments (e.g., foreign‑exchange assets, Indian bonds, or mutual funds), crypto does not enjoy any specific relief under Section 115F. That provision lets NRIs exempt long‑term gains if they reinvest proceeds into approved instruments, but crypto is explicitly excluded.

In short, the NRI tax landscape offers:

• No exemption for capital gains on crypto.
• No loss‑set‑off against other income or other crypto gains.
• Only the 1% TDS credit, which you can claim while filing your return.

Thus, the only “benefit” is the certainty of a uniform 30% rate-no need to track holding periods.

4. Residency Rules That Can Change Everything

Starting April2026, India will replace the old 182‑day test with a 120‑day rule. If you spend 120days or more in India and your Indian‑source income exceeds ₹15lakhs, you become a resident for tax purposes. This shift means:

• All global crypto gains-whether earned on foreign exchanges or through overseas mining-will be taxable in India.
• You lose the limited NRI shield and must report worldwide crypto activity.

Even if you remain an NRI, the Resident but Not Ordinarily Resident (RNOR) (a transitional tax status for returning NRIs) faces similar source‑based taxation. The lack of clear guidance on decentralized transactions adds a layer of legal ambiguity, so many NRIs seek professional advice.

5. Practical Steps for NRIs

Given the high flat rate and lack of deductions, careful planning can still save you headaches:

1. Maintain detailed records. Capture transaction dates, amounts in INR, exchange used, and whether a fee was paid. Spreadsheet templates or crypto‑tax software can automate this.
2. Identify the source. Note whether each trade occurred on an Indian exchange (taxable) or abroad (potentially exempt, unless residency changes).
3. Claim TDS credit. The 1% TDS is reflected in Form 26AS; ensure you claim it while filing your ITR.
4. Separate mining/reward income. Treat mining, airdrops, and gifts as ordinary income and calculate tax at your slab rate.
5. Plan residency. If you anticipate crossing the 120‑day threshold, consider timing your stay or shifting crypto activity to foreign platforms before the rule takes effect.
6. Consult a tax advisor. The interplay of RNOR status, double‑tax treaties, and evolving Indian guidance makes professional input valuable.

6. Comparison: NRI Crypto vs. Traditional NRI Investments

7. Frequently Asked Questions