NRI crypto tax in India: 30% flat rate, TDS and ITR reporting
NRIs trading on Indian crypto exchanges (CoinDCX, WazirX, Zebpay) are subject to India's Virtual Digital Asset (VDA) tax: 30% flat tax on gains regardless of holding period, 1% TDS deducted by the exchange on seller's transactions, no ability to offset crypto losses against other income, and ITR reporting in Schedule VDA.
30% flat tax on crypto gains — no loss offset allowed
India taxes Virtual Digital Asset (VDA) gains — including crypto — at a flat 30% regardless of holding period. A 1% TDS is deducted by Indian crypto exchanges on the seller's proceeds. Crypto losses cannot be offset against other income or even other crypto gains across different transactions. NRIs trading on Indian exchanges or selling Indian-sourced VDAs must report in Schedule VDA of ITR.
Key points
- 30% flat tax on all VDA gains — All crypto gains — regardless of holding period — are taxed at 30% plus surcharge and cess. No distinction between short-term and long-term.
- 1% TDS on every sale — Indian crypto exchanges deduct 1% TDS on the seller's consideration for every VDA transaction above ₹10,000 (₹50,000 for specified persons).
- No loss offset — Crypto losses cannot be set off against other income or carried forward to offset future crypto gains — each transaction is standalone.
VDA tax rules for NRIs
From FY 2022-23, the Income Tax Act introduced Section 115BBH for Virtual Digital Assets. Key rules:
Rate: 30% flat tax on gains from transfer of any VDA (crypto, NFTs, tokens).
TDS: Section 194S requires Indian crypto exchanges to deduct 1% TDS on proceeds above ₹10,000 per financial year.
No loss offset: losses from one VDA transaction cannot be set off against gains from another VDA or from any other income head.
Cost of acquisition only: only the purchase price is deductible — no other expenses (mining cost, transaction fees) except the direct cost of acquisition.
ITR reporting: Schedule VDA must be completed in ITR-2 (for NRIs) — list each transaction, cost and sale price.
NRI crypto scenarios
Trading on Indian exchanges (CoinDCX, WazirX, Zebpay): Indian exchanges deduct 1% TDS. NRI must report all gains in India ITR regardless of exchange location.
Trading on overseas exchanges (Binance, Coinbase): if the VDA is Indian-sourced or the NRI has India taxable income, Indian tax may apply. Seek CA advice for crypto held on overseas exchanges.
Receiving crypto as payment or airdrop: taxed at 30% on the fair market value at receipt.
Crypto held before India's VDA law (before April 1, 2022): cost basis rules apply from that date.
Frequently asked questions
Can an NRI offset crypto trading losses in India?
No. Section 115BBH explicitly prohibits setting off VDA losses against any income, including other VDA gains. This is one of the harshest aspects of India's crypto tax regime.
Is crypto held on overseas exchanges taxable in India for NRIs?
If the NRI is non-resident, only India-source income is taxable. Crypto traded on overseas exchanges using overseas funds is generally not India-source income. However, if the VDA was acquired in India or relates to India-based activity, it may be taxable. The law is still evolving — get a CA opinion for large holdings.
How do I report crypto in ITR?
File ITR-2. Go to Schedule VDA — enter each VDA type, acquisition date, sale date, cost of acquisition and sale consideration. The 30% tax is computed automatically. Claim the 1% TDS credit from Form 26AS.