Conversation around #Bitcoins have started few months ago in #Indian mainstream, few started investing in it. You may think why we are saying “investing” instead of “buying” .. Yes, we have used the right word, today as is bitcoin or any other virtual currency is an investment, as is portrayed as an Asset that may grow, until RBI and Income Tax department of India comes up with regulatory, legal framework around it.
#RBI has reiterated on Dec 05th 2017 that the concerns conveyed in the earlier press release December 24th, 2013 cautioning its users, people of #India regarding the potential #economic, #financial, #operational, #legal, #customer #protection and security related risks associated in dealing with such #VCs.
What happens when you sell #bitcoin for a profit ?
#RBI has not approved Bitcoin as a #legal #currency, and #Income #Tax Department has not further issued a notification to classify as a legal currency, the value you hold in Bitcoins is not taxable but once you sell, based on the period of holding, it may attract either short term or long-term capital gains tax. the actual tax rate may depend on your other taxable income for that specific year of tax filing.
If you are an #NRI who is purchasing and/or selling Bits in foreign countries, you are not attracted towards Indian Income Taxes at this time.