Bitcoin rebounded after a sudden fall triggered apparently by a 'bitcoin-exchange' halting trade due to technical reasons, which led to panic selling over fears that the 'bitcoin bubble' was about to burst. A look at how the cryptocurrency market works
How is crypto currency taxed in India?
In India, the Central Board of Direct Taxes has no guidelines on income-tax for profits on the sale of cryptocurrency. But if bitcoins have been purchased as investment, any profit on sale can be booked as capital gains, experts say.
For instance: Somebody bought a bitcoin for Rs 40,000 four years ago in January 2013 (FY 2012-13) and sold it for Rs 69,500 in November 2016 (FY 2016-17), making Rs 29,500 profit
Value of sale 69,500
Less indexed cost of acquisition* 52,817
Long-term capital gains 16,683
@20% 3,337
*Cost of acquisition multiplied by (Cost Inflation Index of the year of sale/CII of the year of purchase)