The short answer: moving abroad does not shrink India’s tax on crypto you sell on an Indian exchange. An NRI pays the same flat 30% plus 4% cess (31.2%) on the gain as a resident. What changes is the tax deducted at source, and that is where many NRIs end up with a bill they didn’t see coming.
You can run your own numbers in our NRI crypto tax calculator.
Same rate, same harsh rules
The virtual digital asset (VDA) regime does not care where you live. Gains are taxed at 30% under Section 115BBH, plus 4% cess, and surcharge on top once income crosses ₹50 lakh. Only the purchase cost is deductible: no exchange fees, no gas fees. A loss on one coin cannot reduce a gain on another, and it cannot be carried forward, as guides for NRIs such as NRI Blueprint and TrustNRI set out.
The key question for an NRI is which income India can tax at all. A non-resident is taxed on income received in India or arising in India. Gains realised on an Indian exchange generally fall inside that net. Trading on a purely foreign platform while non-resident is a different question that depends on the facts, so settle it with a chartered accountant before you trade, not after.
The TDS gap: 194S is for residents
The 1% TDS everyone knows is Section 194S. Its own wording, quoted on the government’s TRACES FAQ, applies to a person “responsible for paying to any resident” for a VDA transfer. For a non-resident seller, withholding falls under Section 195, at the rate in force, which tracks the 30% plus cess rather than 1%.
In practice, TrustNRI notes that some Indian exchanges still cut only 1% from every seller. That isn’t a saving. Whatever is withheld is only an advance; the full 31.2% is still owed when you file.
(These are the section numbers of the Income-tax Act, 1961. The Income-tax Act, 2025 renumbered them from 1 April 2026; our section map lists the new numbers.)
A worked example in rupees
Say an NRI in Dubai bought Bitcoin on an Indian exchange for ₹6 lakh and sells it there for ₹10 lakh.
| Step | Amount |
|---|---|
| Sale value | ₹10,00,000 |
| Cost (the only deduction) | ₹6,00,000 |
| Gain | ₹4,00,000 |
| Tax at 30% | ₹1,20,000 |
| 4% cess | ₹4,800 |
| Total Indian tax | ₹1,24,800 |
| Withheld if the exchange cuts 1% of the sale | ₹10,000 |
| Still to pay if only 1% was cut | ₹1,14,800 |
So a 1% deduction covers about 8% of the bill. The rest has to be paid by the NRI, through advance tax during the year or self-assessment tax before filing, and late payment draws interest. Living in a country with no income tax, like the UAE, doesn’t change India’s claim on an Indian-source gain.
If your KYC on the exchange still shows you as a resident, the platform will treat you as one. Updating your status keeps your records, and the tax deducted, consistent with your return.
Resident vs NRI: what actually differs
| Point | Resident | NRI |
|---|---|---|
| Tax on gain | 30% + 4% cess | 30% + 4% cess |
| TDS section on sale | 194S, 1% | 195, at the rate in force |
| Loss set-off | Not allowed | Not allowed |
| Overseas wallet in Schedule FA | Yes, if ordinarily resident | No |
| Taxed on foreign-platform gains | Yes (worldwide income) | Depends on source |
The Schedule FA row matters when you come home. While you are non-resident, TrustNRI explains that a foreign crypto wallet doesn’t need to be reported in the foreign assets schedule. Once you are ordinarily resident again, it does, and leaving it out can draw Black Money Act penalties.
Rules on moving money in and out of India sit under FEMA, which is a separate law from income tax. Our Mudrex explainer shows how that side gets enforced.
BtcMedia verdict
For an NRI, the 1% you see deducted is the least reliable number on the statement. Work out 31.2% of every gain yourself, compare it with what was withheld in Form 26AS, and pay the gap before filing. If too much was cut, the excess comes back, as our TDS refund guide explains. Use the crypto tax calculator for the gain and the NRI calculator for the withholding side.
FAQ
Do NRIs pay crypto tax in India? Yes, on gains from Indian exchanges or otherwise sourced in India: a flat 30% plus 4% cess, with surcharge above ₹50 lakh of income.
Is the 1% crypto TDS applicable to NRIs? Section 194S is written for resident sellers. For non-residents, withholding falls under Section 195, though some exchanges still deduct only 1%. Either way, the full tax is settled in your return.
Do I have to report my foreign crypto wallet as an NRI? Not in Schedule FA while you are non-resident or RNOR. It must be reported once you become resident and ordinarily resident.
How we calculated this: 30% of the ₹4 lakh gain plus 4% cess on that tax, compared with 1% of the ₹10 lakh sale value; rules as published in the sources linked above, checked 30 October 2026, 2:50 AM IST. This is general information, not tax or financial advice; NRI cases depend on residential status and treaties, so confirm with a chartered accountant.