Crypto taxes for nri (usa visa holder)
Hi there,
I am Raja, a NRI (USA Work visa holder) and I would like to know my income tax obligation in the below scenario
I am a cryptocurrency a.k.a virtual digital asset (Bitcoin, Ethereum and etc.,) trader in USA.
1) Buy the crypto currency (Bitcoin, Ethereum) in USA.
2) Send the digital currency to my Bitcoin wallet in India.
3) I sell the digital currency (Bitcoin) from my Bitcoin wallet in an Indian Bitcoin exchange like Coindcx or Wazirx. There is a capital gain made (3-4 percent ) after the sale of the Bitcoin in the Indian exchange like Coindcx.
4) I withdraw the principal and capital gains from my Bitcoin sale from my Bitcoin Indian wallet to my NRO account
5) Transfer funds from NRO to NRE account and repatriate the funds from my NRE account to my own USA Bank account.
6) Repeat the steps 1) to 5) over and over.
Question: 1) Should i need to pay tax on the capital gain tax (30%) In India that i made by buying the Bitcoin In USA and selling the same in an Indian exchange? Also, from the recent news there is a 1% TDS on the considered amount, since I am only selling in India (not buying digital asset in India), how TDS deduction works? if the exchange deducts TDS on my total sale proceedings, should I be able to claim it, if I am not suppose to pay the tax in India since I am already paying it in USA?
My understanding is that i would be paying the tax on the capital gain made in USA anyway and therefore need not to pay the tax on the capital gain in India (as it would be like paying tax 2 times!!!, if DTAA allows, no need of double taxation).
Therefore my understanding is that I should be able to transfer the money from my NRO to NRE account and repatriate the complete principal+interest to my USA Bank account. I pay the income tax on the capital gain (3-4 %) that I made in USA itself. Please advise. Thank you
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