NRI Crypto Tax – Essential Rules for Non‑Resident Indians

When dealing with NRI crypto tax, the set of Indian tax obligations that apply to a Non‑Resident Indian holding or trading cryptocurrencies. Also known as Non‑Resident Indian cryptocurrency taxation, it determines how capital gains, GST, and income are reported to the Indian tax authorities.

In the same ecosystem, Crypto Taxation, the broader framework that treats digital assets as taxable property in India sets the rules for classification, valuation, and reporting. The Double Taxation Avoidance Agreement, a treaty between India and the NRI's country of residence that prevents the same income from being taxed twice can lower the effective rate for many expatriates. Meanwhile, Capital Gains Tax, the tax on profit earned from selling crypto assets, calculated on short‑term or long‑term holdings forms the core of the liability.

NRI crypto tax isn’t a single number; it’s a combination of three main pieces. First, you must decide whether your crypto activity counts as a capital gain or ordinary income. Short‑term trades (held less than 36 months) are taxed at your applicable slab rate, while long‑term gains enjoy a 20% flat rate. Second, the Goods and Services Tax (GST) can apply if you provide crypto‑related services, such as staking as a business. Third, the DTAA (Double Taxation Avoidance Agreement) lets you claim credit for taxes paid abroad, but only if you have a valid Tax Residency Certificate from your host country.

How to Prepare Your NRI Crypto Tax Return

The filing process follows the same ITR‑2 or ITR‑3 forms used by residents, but with a few extra steps. Start by gathering purchase and sale records from every exchange you use – Indian platforms like WazirX, global ones like Binance, and any peer‑to‑peer transactions. Convert all amounts to Indian rupees using the RBI‑approved exchange rate on the day of each transaction. Next, calculate your net capital gain or loss for the financial year. If you have a loss, you can carry it forward for eight years, a useful feature for active traders.

After you have the net figure, fill the Schedule CG (Capital Gains) section, entering short‑term and long‑term amounts separately. If you earned crypto‑related service income, report it under “Income from Business or Profession” and pay any applicable GST. Finally, attach a copy of the DTAA claim form along with the Tax Residency Certificate to avoid double taxation. The entire return must be submitted before July 31 of the assessment year, otherwise penalties will apply.

Understanding the interaction between these entities helps you avoid common pitfalls. For example, confusing capital gains with business income can trigger a higher tax slab and unnecessary GST. Likewise, neglecting the DTAA claim may double‑dip your tax bill, especially if you already paid taxes in a high‑tax jurisdiction such as the United States or the United Kingdom. By treating each component—capital gains, GST, and treaty relief—as a separate piece, you keep the calculation clean and compliant.

Below you’ll find a curated set of articles that walk through each part of the NRI crypto tax landscape. From detailed exchange‑specific fee breakdowns to step‑by‑step guides on filing ITR forms, the collection gives you actionable insight to stay on the right side of the law while optimizing your after‑tax returns.