NRI Crypto Tax: What Non-Resident Indians Need to Know About Crypto Reporting

When you're an NRI, a Non-Resident Indian living abroad but still subject to Indian tax rules on certain income. Also known as Non-Resident Indian, it means your crypto gains may still be taxed in India—even if you never set foot in the country. Many NRIs think living overseas lets them dodge Indian taxes on crypto. That’s a dangerous myth. India doesn’t care where you are—it cares where your money comes from and how it’s earned.

The Indian government treats crypto as a virtual digital asset, a legal category created in 2022 to classify cryptocurrencies, NFTs, and other blockchain tokens under tax law. Also known as VDA, it’s not currency, not stock—it’s something new, and the rules are strict. Any profit you make from selling, trading, or swapping crypto is taxable. Whether you bought Bitcoin in the U.S., traded Solana on Binance, or earned tokens from a DeFi protocol, if you’re an NRI with Indian ties, the Income Tax Department can track it. They’ve been forcing exchanges to share user data since 2023. Even if you never used an Indian exchange, your bank transfers or crypto-to-fiat cashouts might trigger a notice.

Here’s what actually matters: crypto income tax, the 30% tax rate applied to all gains from virtual digital assets in India, with no deductions allowed for losses. Also known as VDA tax, it’s one of the harshest crypto tax regimes in the world. You can’t offset losses from one coin against gains from another. If you bought Ethereum for $10,000 and sold it for $15,000, you owe 30% on the $5,000 profit—even if you lost $8,000 on another token. No deductions. No carry-forwards. Just a flat 30% plus 4% cess. And if you didn’t report it? Penalties can hit 200% of the tax due, plus interest. The government is already matching wallet addresses with bank statements and KYC data from global exchanges.

Some NRIs try to hide crypto income by using offshore wallets or peer-to-peer trades. Don’t. India’s tax authorities have access to blockchain analytics tools and work with international agencies. They’ve already audited hundreds of NRIs. If you’re filing an ITR (Income Tax Return) in India—even if you’re not required to—you must declare crypto gains. If you’re not filing, you’re still not safe. The law doesn’t care if you forgot. It only cares if you didn’t pay.

There’s no gray area here. Crypto isn’t a hobby. It’s income. And for NRIs, that income has a very specific tax address: India. Whether you’re in the U.S., U.K., Singapore, or Dubai, if you’re still classified as an NRI under Indian law, your crypto profits belong on your Indian tax return. The only way out is to change your residential status permanently—and even then, past gains are still taxable.

Below, you’ll find real cases, real mistakes, and real fixes from people who’ve been through it. No fluff. No theory. Just what you need to know before the next tax season hits.