Indian Compliance & Tax

How is crypto taxed when using a foreign exchange from India?

If you are an Indian tax resident, your gains from virtual digital assets are taxable in India regardless of whether you trade on a domestic or foreign exchange. The flat 30% on transfer gains applies, and the obligation to report does not disappear because the platform sits offshore. A practical complication is that a foreign exchange may not deduct the 1% TDS, which can shift that compliance burden onto you. For example, a ₹20,000 gain on an overseas platform is still a ₹6,000 tax event you must report in India.

This is general information, not tax advice. Tax rules change and depend on your individual circumstances — verify the current rules or consult a qualified tax professional before acting.