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

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 taxable in India—even if you never set foot in the country. The Indian government doesn’t care where you are when you sell Bitcoin or trade altcoins. If you earned income from crypto while being classified as an NRI, you’re on the hook for taxes under India’s Income Tax Act.

Here’s the simple truth: crypto gains, profits from selling or trading digital assets like Bitcoin, Ethereum, or any token. Also known as crypto capital gains, they’re treated as taxable income in India regardless of your residency status. If you bought Ethereum in 2022 for $2,000 and sold it in 2024 for $5,000, that $3,000 profit is taxable. The same applies if you traded Solana for Shiba Inu and made a profit. The Indian tax department tracks this through exchange reports, KYC data, and bank inflows. Even if you use a foreign exchange like Binance or Kraken, if you’re an NRI with an Indian bank account or PAN card, your crypto activity is traceable.

And it’s not just about selling. crypto airdrops, free tokens received without purchase, often from new projects or community rewards. Also known as token distributions, they count as income when you receive them. If you got 100 $GOAL tokens from a 2024 airdrop and later sold them, you owe tax on the value at the time you got them—not when you sold. Same goes for staking rewards, mining income, or DeFi yield. The rule is clear: if you got something of value from crypto, the taxman wants his cut.

Many NRIs think they’re safe because they live in the U.S., UAE, or Singapore. But India’s tax law doesn’t care where you live—it cares about your tax status and source of income. If you’re an NRI but still have financial ties to India—like a savings account, property, or family business—your crypto gains are fair game. The tax rate? A flat 30% on profits, plus 4% health and education cess. No deductions, no exemptions. No capital loss carryforwards. Even if you lost money on other trades, you can’t offset it against your crypto gains.

And yes, reporting is mandatory. You must file an ITR (Income Tax Return) in India every year if your crypto gains exceed ₹50,000. The government now requires exchanges to report transactions over ₹10,000. If you’ve ever transferred crypto to or from an Indian wallet, you’re in their system. Ignoring this isn’t an option. Penalties can include fines up to 200% of the tax due, and in extreme cases, legal action.

What about crypto you bought before becoming an NRI? That’s trickier. The cost of acquisition is based on the price when you first bought it—not when you moved abroad. So if you bought Bitcoin in 2018 for ₹50,000 and sold it in 2025 as an NRI for ₹15 lakh, your entire ₹14.5 lakh profit is taxable. There’s no grandfathering clause. No amnesty. No loophole.

If you’re an NRI holding crypto, here’s what you need to do: track every transaction, note the date and value in INR at the time of buy/sell/airdrop, keep records for at least six years, and file your taxes even if you think you’re outside India’s reach. The posts below break down real cases—like how someone in Dubai got hit with a ₹7.2 lakh tax bill after selling crypto linked to their Indian PAN, or how a Canadian-based NRI missed reporting a $50,000 airdrop and got audited. You’ll find clear guides on how to calculate your tax, what forms to use, and how to avoid common mistakes that cost people thousands.