Many Indian mariners on leave explore derivative trading (Futures & Options) and cryptocurrencies to generate quick returns. However, doing so while holding Non-Resident status involves strict regulatory hurdles.
FEMA Prohibition on NRI F&O Trading
Under FEMA guidelines issued by the Reserve Bank of India, Non-Residents are strictly prohibited from trading in equity derivatives (F&O) unless they register through an approved Custodial Participant (CP) code and trade via an NRO account. Trading F&O through standard domestic broker accounts is a serious violation of FEMA.
30% Flat Tax on Virtual Digital Assets (Crypto)
Under Section 115BBH, gains from crypto transfers are taxed at a flat 30% with no set-off of losses. Ensure you disclose crypto transactions accurately in Schedule VDA of ITR-2 to avoid scrutiny.