if someone earns 5 bitcoins (at 20,000) from doing some work and converts only 1 bitcoin (at 21000) thru an exchange, how should the income tax be calculated here?
even though in this example it doesn't exceed 2.5 laks but assume that there are other sources of income that make it exceed 2.5 laks..
thank you
From my knowledge, you would be paying the taxes for 1000 INR which is the profit from selling 1 bitcoin for 21000 that you purchased at 20000 INR.
not purchased, but got from doing work for someone.
dude that is the concept of BITCOIN ... NO TAXES , NO govt.. NO banks... and eventually NO QUESTION...
the only good thing for everyone not only Indians is to wait for more places to accept BITCOINS...
and as u r saying ,no the income -tax department wont interfere unless u have continuous trades and that too majority over 10 lacks ..
so no worries u can sell and encash small amounts.