Thank you for correcting. As far as I have read/understood, even if Bitcoin is bought, you will have to pay the tax because it is an asset. Can you please point me to right direction if I am wrong? Please give a reference too(if possible).
Income tax is only applicable if you make gains by buying and selling bitcoins, or if you get bitcoins by selling goods/services.
Indirect taxes like VAT may be applicable while selling bitcoins.
http://www.livemint.com/Money/3qcKrBcAMIisahVOyOygYK/Are-bitcoins-currency-or-asset.htmlThank you! Much appreciated.