Incometax on Bitcoin Earning Vs Bitcoin Tradin??

[niisarearning]

Hi may be this is too old topic if income tax is imposed for bitcoin earning how it will be calculated . I have two scenario
1) Buying bitcoin from local exchanges (zebpay , unocoin) and selling For profit to a bank account . (capital gain)
2) Giving services getting bitcoin as payment and  receive all payments gathered in local exchange and send it to bank account .

How income tax will be calculated please help me any genuine answer much appreciated as soon as i am getting proper answer will lock the thread . Please dont spam here.

[ahmad21]

RBI and IT department are still not sure that how are they going to treat bitcoin whether as an asset or currency. Considering it an asset. If you held it for period less than an year it is short term capital gain which is normally added to the income if it is held for more than an year it becomes ltcg taxable at 20% flat. Earning will be a normal income under income from other sources. But you have to pay tax on amount that you have realised to bank.

[niisarearning]

RBI and IT department are still not sure that how are they going to treat bitcoin whether as an asset or currency. Considering it an asset. If you held it for period less than an year it is short term capital gain which is normally added to the income if it is held for more than an year it becomes ltcg taxable at 20% flat. Earning will be a normal income under income from other sources. But you have to pay tax on amount that you have realised to bank.

Thanks for the information even i found the same details by consulting auditor where i am giving IT returns end of the year hope it will help some of the people here . So based on my research hold bitcoin as much as we can and keep it for long term instead of withdrawing to bank account.