Crypto Tax Calculator for International Transfers
Calculate your tax liability when moving crypto assets from India to another country.
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Important: All crypto transfers from India are treated as taxable events. You must declare foreign holdings in Schedule VDA of your ITR-2/ITR-3. Failure to report can result in 60% penalty on undisclosed amounts.
If you're thinking about moving your crypto assets out of India, you need to know this: the rules changed. A lot. And the penalties for getting it wrong aren't just fines-they can mean criminal charges. This isn't about speculation or trading. This is about legal compliance, tax reporting, and avoiding government scrutiny. You can legally hold and transfer crypto abroad from India, but only if you follow every step. Skip one, and you risk losing everything.
What Happens When You Send Crypto Out of India?
Sending crypto from India to another country triggers multiple layers of regulation. It's not just a blockchain transaction. It's treated as a financial movement under the Foreign Exchange Management Act (FEMA), a taxable event under the Income Tax Act, and a compliance report under the Financial Intelligence Unit-India (FIU-IND). The government doesn't care if you're moving Bitcoin, Ethereum, or an NFT. All Virtual Digital Assets (VDAs) are treated the same.Since April 2025, every cross-border crypto transfer must be reported. The Reserve Bank of India (RBI) requires exchanges to collect and send your full details-name, address, Aadhaar, PAN, and even your date of birth-to FIU-IND within 24 hours if the transaction exceeds ₹10 lakh (about $12,000). But here’s the catch: even smaller transfers trigger the FATF Travel Rule. Unlike most countries that only apply this to transactions over $1,000, India applies it to every transfer, no matter how small. That means even sending 0.01 BTC to a friend in Singapore requires your personal info to be shared with the recipient’s exchange.
How Much Tax Will You Pay?
India has one of the harshest crypto tax regimes in the world. When you move crypto abroad, you're not just transferring an asset-you're triggering a capital gain. And the tax bill is steep.First, there’s the 30% flat tax on profits. No deductions. No loss offsets. If you bought Bitcoin at ₹20 lakh and now it’s worth ₹30 lakh, you owe ₹3 lakh in taxes just on the gain-even if you haven’t sold it in INR. Second, there’s a 1% Tax Deducted at Source (TDS) on every transaction over ₹50,000 in a financial year. That includes transfers to foreign wallets or exchanges. So if you send ₹60,000 worth of ETH to Coinbase, ₹600 gets taken off immediately. Third, if your exchange is based in India (like WazirX or CoinDCX), they’ve added an 18% GST on top of everything: withdrawals, staking, trades, even margin positions. That’s not a rumor. It’s been enforced since July 2025.
And if you don’t declare foreign holdings? That’s where it gets dangerous. The Income Tax Department requires you to report all overseas crypto assets in Schedule VDA of your ITR-2 or ITR-3. If you don’t, you’re hit with a 60% penalty on the undisclosed value under Section 158B. That means if you have $100,000 in Bitcoin in a US wallet and didn’t report it, you could owe ₹48 lakh in penalties alone-not even counting the original tax. Add criminal prosecution under the Black Money Act, and you’re looking at jail time.
FEMA Rules: The Hidden Trap
FEMA is where most people get caught off guard. The government treats crypto as “intangible movable property.” That means moving it abroad falls under the Liberalized Remittance Scheme (LRS). Under LRS, Indian residents can send up to $250,000 overseas per financial year for any purpose-including crypto. But here’s the key: you need prior approval from an authorized dealer bank (like HDFC or ICICI) if you’re crossing that $250,000 limit. And even if you stay under it, you still need to declare the purpose of the transfer.Many users think, “I’m just moving my own crypto, not sending money.” But the government doesn’t see it that way. In June 2025, the Enforcement Directorate sent notices to 25 offshore exchanges-including Binance and KuCoin-demanding they identify Indian users and freeze accounts that didn’t comply with Indian KYC. One Reddit user reported getting an email from WazirX saying their account would be frozen unless they submitted FEMA compliance documents within 72 hours. That’s not a scam. That’s policy.
What documents do you need? A bank certificate confirming the source of funds, a declaration of the purpose of transfer, and proof of tax payment on the gains. Most banks won’t issue these unless you’ve filed your ITR with Schedule VDA. It’s a loop. You need the bank’s approval to send crypto, but you need to have filed taxes to get the bank’s approval. And if you’re using a P2P platform to bypass exchanges? That doesn’t help. FIU-IND monitors P2P transactions too. Chainalysis reported a 28% rise in P2P volumes in early 2025-not because people are avoiding taxes, but because they’re trying to avoid the red tape.
How to Legally Move Crypto Abroad
There’s no secret loophole. But there is a legal path. Here’s how to do it right:- Calculate your cost basis and profit on every asset you plan to move. Use the RBI exchange rate on the day of transfer. The CBDT clarified this in Circular No. 18/2025-valuation must be in INR.
- File your ITR with Schedule VDA. Report every foreign wallet address you control. Don’t omit anything. Even if you haven’t sold, you still owe tax on unrealized gains if you’re moving the asset.
- Pay the 30% capital gains tax and 1% TDS. Keep receipts. You’ll need them for the bank.
- Approach your authorized dealer bank (your main bank) with your ITR, tax payment proof, and a declaration of intent. Request LRS approval for the transfer.
- Only then, initiate the transfer through a registered Indian exchange that complies with FATF Travel Rule. Avoid unregistered platforms.
- Keep records for at least 6 years. The tax department can audit you retroactively.
It’s not easy. But it’s possible. And it’s safer than trying to hide it.
What Happens If You Don’t Comply?
The Enforcement Directorate isn’t waiting. In 2025, they started freezing bank accounts linked to unreported crypto transfers. They’re using blockchain analytics to trace wallet addresses back to Indian IDs. One user in Bangalore had his entire savings account locked after a single transfer of 0.5 BTC to a US wallet. He hadn’t filed taxes. He didn’t report it. He didn’t get bank approval. Within 10 days, he was summoned for questioning.And it’s not just individuals. Exchanges are being forced to act. In the first half of 2025, 42% of Indian crypto platforms shut down or merged because they couldn’t afford the compliance costs. If your exchange stops supporting cross-border transfers, it’s not because they’re being difficult-it’s because they’re being forced to.
Non-compliance isn’t just about losing money. It’s about losing freedom. The government has the power to seize assets, freeze bank accounts, and prosecute under the Prevention of Money Laundering Act. There’s no statute of limitations on undeclared crypto.
What’s Next for Crypto in India?
The government is preparing for the Financial Stability Board’s peer review in October 2025. That means more alignment with global standards like the Crypto-Asset Reporting Framework (CARF). Starting in 2026, India will automatically share tax data on crypto holdings with over 100 countries-including the US, UK, and Singapore. If you have crypto abroad and haven’t declared it, you’re already on their radar.Experts warn the current system is unsustainable. Dr. Rajeshree Agarwal of NIPFP says India’s effective tax burden on crypto can exceed 50% when you add GST, TDS, and capital gains. That’s higher than Nigeria and Pakistan. It’s pushing users to dark P2P markets and offshore exchanges with no compliance. But the government isn’t backing down. Finance Minister Nirmala Sitharaman has said repeatedly: “Cryptocurrencies cannot be a legal currency in India.” That means no legalization. No easing. Just more control.
The only thing that might change is enforcement focus. Right now, the government is targeting large transfers and repeat offenders. But with CARF coming, they’ll soon be able to detect even small, unreported wallets automatically. The window for quietly moving crypto abroad is closing.
Should You Move Your Crypto Out of India?
If you’re holding crypto for long-term value and want to store it in a non-Indian wallet, you can. But only if you’re ready to pay the price: taxes, paperwork, bank approvals, and full transparency. There’s no legal shortcut. No anonymous transfer. No untraceable path.Many people ask: “Can’t I just use a VPN and a foreign exchange?” The answer is yes-but you’re not avoiding the law. You’re just making it harder to prove you broke it. And if you’re caught, the penalties are worse.
The smart move isn’t to hide. It’s to comply. Pay the tax. Report the asset. Get the bank approval. Document everything. Then move your crypto. It’s expensive. It’s slow. But it’s legal. And in India’s current climate, legality is the only safe option.
Can I move crypto abroad without paying tax in India?
No. Any transfer of crypto assets out of India is considered a taxable event under Indian law. You must pay 30% capital gains tax on profits, plus 1% TDS on the transaction value. Failure to pay triggers a 60% penalty on the undisclosed amount and possible criminal charges under Section 158B of the Income Tax Act.
Is there a limit on how much crypto I can send abroad?
Yes. Under FEMA’s Liberalized Remittance Scheme (LRS), Indian residents can send up to $250,000 per financial year for any purpose, including crypto. If you exceed this, you need prior approval from an authorized dealer bank. All transfers, regardless of amount, must be reported to FIU-IND if processed through a regulated exchange.
Do I need to report crypto held in foreign wallets?
Yes. You must declare all foreign crypto holdings in Schedule VDA of your ITR-2 or ITR-3. This includes wallets on Coinbase, Binance, Kraken, or any non-Indian platform. The tax department uses blockchain analytics and international data sharing (CARF) to detect unreported assets. Non-disclosure can lead to a 60% penalty and prosecution.
Can I use P2P platforms to avoid compliance?
Using P2P platforms doesn’t make you compliant. Even peer-to-peer transactions are monitored by FIU-IND. The government tracks wallet addresses linked to Indian IDs. While P2P volumes rose 28% in 2025, this was due to users trying to bypass exchange restrictions-not avoid taxes. The tax liability remains the same, and enforcement against unreported P2P activity is increasing.
What happens if my exchange freezes my account?
If your Indian exchange freezes your account, it’s likely because you didn’t provide FEMA or KYC documentation. Exchanges are legally required to report suspicious activity. To unfreeze your account, you must submit proof of tax payment, bank approval for LRS, and a declaration of the transfer’s purpose. Ignoring the request may result in permanent account closure and reporting to the Enforcement Directorate.
Will India ban crypto transfers in the future?
India won’t ban crypto transfers outright, but it will keep tightening controls. The government’s goal is not to eliminate crypto but to control and tax it. The upcoming Winter Session of Parliament may introduce new legislation, but Finance Minister Sitharaman has confirmed crypto will never be legal tender. Expect more reporting, higher compliance costs, and automated international data sharing-not a ban.
Next Steps: What to Do Right Now
If you’re planning to move crypto abroad:- Calculate your gains and losses for all assets held as of December 10, 2025.
- File your ITR-2 or ITR-3 with Schedule VDA before July 31, 2026.
- Visit your bank and ask for LRS approval documentation for crypto transfers.
- Use only registered Indian exchanges (WazirX, CoinDCX, ZebPay) that comply with FATF Travel Rule.
- Keep every receipt, bank statement, and tax payment confirmation for six years.
Don’t wait until you’re under investigation. The rules are clear. The penalties are real. And the government is watching.
Anselmo Buffet
December 11, 2025 AT 08:36Just read this whole thing and honestly? I'm glad I moved mine last year before all this got enforced.
JoAnne Geigner
December 12, 2025 AT 12:57This is so meticulously detailed... I feel like I just read a legal textbook written by someone who's been through it. The part about FATF applying to every transfer, no matter how small? That's insane. And the 18% GST on withdrawals? I didn't even know that was a thing. Thank you for laying it all out like this. I think more people need to see this before they make a move.
Taylor Fallon
December 13, 2025 AT 07:16I'm so glad someone finally wrote this without fear. I've been trying to explain to my cousin in Mumbai that 'just sending it to Binance' isn't a workaround. The tax, the reporting, the bank approval loop-it's all connected. And yes, P2P is being monitored. Chainalysis isn't lying. I wish the government would just legalize it and tax it cleanly instead of making us jump through 17 hoops just to move our own money. But here we are.
Also, if you're using a VPN and think you're hidden? You're not. They're cross-referencing IP logs with exchange KYC. I know someone who got flagged because their phone's location history showed they were in Bangalore while their wallet was sending from a US IP. Don't be that person.
Eunice Chook
December 13, 2025 AT 14:1830% tax on unrealized gains? That's confiscation. This isn't taxation-it's extortion.
Lois Glavin
December 14, 2025 AT 10:01It’s scary how much pressure people are under just to keep their own assets. I get why the government wants control, but this feels like punishing people for being smart enough to hold crypto. Maybe the real solution is to fix the system instead of forcing everyone into compliance hell.
Abhishek Bansal
December 15, 2025 AT 09:54LMAO you people think this is bad? Try living here and watching your bank freeze your account because you sent 0.005 BTC to a friend. The RBI doesn’t care if you’re poor or rich. If it’s crypto, it’s suspect. And the worst part? Everyone’s scared to speak up. I’ve seen friends disappear from Reddit after posting about this. They just vanish.
Bridget Suhr
December 16, 2025 AT 19:43Just a heads-up: the RBI exchange rate on the day of transfer? Make sure you screenshot the official page. I saw someone get audited because they used CoinMarketCap and the tax officer said it wasn't 'authorized.' It's ridiculous, but it happened.
Ike McMahon
December 17, 2025 AT 20:54Step 3: Pay the tax. Keep receipts. This is the most important part. Don’t skip it. Even if you’re broke, file something. A late return with full disclosure is better than silence.
Patricia Whitaker
December 18, 2025 AT 08:58Wow. So the solution is just pay up and obey? No creativity? No innovation? Just become a compliant drone? This is why crypto was supposed to be freedom.
Vidhi Kotak
December 18, 2025 AT 19:08As someone from India who’s been through this, I can confirm: the bank approval process takes 3–4 weeks. Call your branch manager directly. Don’t wait for email replies. Bring your ITR printout. They’ll help if you’re polite. And yes, they’ll ask why you’re moving crypto. Say ‘investment diversification.’ Don’t say ‘to avoid taxes.’ That’s a red flag.
Kim Throne
December 20, 2025 AT 18:25Per Circular No. 18/2025, the valuation methodology must be documented using the RBI reference rate as of 00:00 IST on the date of the transaction. This is non-negotiable. Failure to adhere to this standard renders any tax filing materially deficient. I strongly recommend consulting a chartered accountant with experience in VDA reporting before initiating any cross-border transfer.
Ian Norton
December 22, 2025 AT 16:08They're not trying to regulate crypto. They're trying to kill it. This is a tax trap disguised as compliance.
Nicholas Ethan
December 23, 2025 AT 14:4330% tax. 1% TDS. 18% GST. 60% penalty. That’s 109% effective tax on gains. You’re paying more than you made. This isn’t policy. It’s theft.
Rakesh Bhamu
December 23, 2025 AT 23:18I moved my ETH to a hardware wallet in Singapore last month. Took me two months to get the bank papers. But I did it. Filed my ITR. Paid everything. No drama. No freeze. Just slow, boring, legal work. It’s not glamorous, but it works. Don’t let fear make you reckless.
Hari Sarasan
December 25, 2025 AT 12:56THE GOVERNMENT HAS NOW INSTITUTED A REAL-TIME BLOCKCHAIN MONITORING SYSTEM IN CONJUNCTION WITH FIU-IND’S AI-DRIVEN TRANSACTION ANALYSIS MODULE. ANY UNDECLARED VDA TRANSFER WILL BE FLAGGED WITHIN 72 HOURS. THIS IS NOT A DRILL. THE ENFORCEMENT DIRECTORATE IS ALREADY IN POSSESSION OF 8,400 INDIAN-WALLET LINKS AS OF MAY 2025. DO NOT UNDERESTIMATE THE SCALE OF THIS SURVEILLANCE.
Kelly Burn
December 26, 2025 AT 21:07So... we’re just supposed to pay 30% tax on something we didn’t even sell? 😅 I mean... I get the logic, but it feels like they’re taxing the *idea* of profit. Like, if I believe my BTC will go to $100K, I owe tax now? That’s wild. 🤯
Candace Murangi
December 27, 2025 AT 19:30I moved from India to the US two years ago. I didn’t know about this until I got a notice from the tax department. Turns out, even if you’re a non-resident, if you held crypto while you were an Indian resident, you still owe tax on gains during that period. I had to file back ITRs for 2023 and 2024. It was a nightmare. Don’t wait. Do it now.
Joey Cacace
December 28, 2025 AT 21:18Thank you for writing this with such care and precision. I am deeply moved by the clarity of your explanation. It is not often that one encounters such a thoughtful, thorough, and compassionate guide to such a complex and emotionally charged subject. I will be sharing this with my entire family, and I encourage everyone reading this to treat this not as a burden, but as an act of integrity. With great power comes great responsibility-and with great assets comes great accountability. You have done your part. Now, please, take a breath. You are not alone.