Quote from: polynesia on July 30, 2015, 01:17:13 AM

Quote from: RocketSingh on July 29, 2015, 12:36:25 PM

Quote from: gowron on July 29, 2015, 11:32:59 AM

Then tell list down how you obtained those bitcoin, along with acquisition costs.

How do I list acquisition costs for bitcoins, which are earned from signature campaign, giveaways, ad space selling, social media promotion ?

Think of it as a 2 step process. You first earn money through signature campaigns (which has an INR value) and pay tax on that.
When you sell the bitcoins later, you have capital gains or loss. The INR value of the bitcoins when you earned them becomes your acquisition cost.

Do you mean I can show the INR value of bitcoins earned, at the time of earning, as my cost ? That way, those who sell immediately after earning, will never have a taxation on their earning. I dont think Income Tax authority is ever going to accept this logic. In my understanding, for something to be considered as cost, there needs to be a clear documentation of spending, i.e. debit transaction in bank account or bill/invoice for cash payment. For example, I can show my mobile & internet recharge cost as cost of running business. I have clear cash trail going out in that case. For bitcoin earned, there is nothing as such that can be shown. Though, there are some actual cost in building a website through which I earn bitcoin by ad space selling.