Crypto tax for NRIs and returning NRIs: what applies in India
How Indian crypto tax applies to NRIs and people moving back to India: residency, Indian exchanges, 1% TDS, foreign holdings and what changes when you return.
- Checked against the rules: Sept 2026
- Sources cited · No buy or sell calls
- Tax year 2026–27
Residential status comes first
Indian tax depends on whether you're a resident, a resident but not ordinarily resident (RNOR), or a non-resident for the year. It's mainly based on days spent in India. Get this right before anything else.
If you're an NRI
- Crypto sold on an Indian exchange is generally Indian-source income, taxed at 30% plus cess, with 1% TDS deducted. A higher TDS rate can apply to non-residents in some cases, so check with your exchange.
- Some Indian exchanges have restrictions on NRI accounts and need extra KYC. Check before you deposit.
- Crypto held and sold entirely abroad is generally not taxed in India while you're a non-resident, but your country of residence may tax it.
If you're moving back
- You may be RNOR for a period after returning. During RNOR years, foreign income is generally not taxed in India unless it comes from a business controlled in India.
- Once you're a resident and ordinarily resident, worldwide crypto gains are taxable in India at 30% plus cess, and foreign crypto holdings should be reported in Schedule FA. Foreign exchanges and Schedule FA.
- The cost basis of crypto bought before you became resident is not clearly settled. Keep full records of purchase dates and prices.
Double tax
If both countries tax the same gain, a tax treaty or foreign tax credit may help. This is specialist territory, so speak to a CA with cross-border experience.
Sources
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