I have a question..

Suppose if I am trading BTC on coinsecure i.e. I constantly buy and sell so there is an INR profit on the Exchange but I do not redeem them to my bank account. My question is, if I would be liable for taxation on the profits? Or would that happen only after I Redeem the money in my account?

Argument in favor of taxes:

You are selling assets and buying them again. Hence there is a profit, regardless of the fact that you have not got it in your bank account yet. (Like stock trading)

Arguments not in favor of tax:

According to my bank statements, I have submitted money in a company(exchange) as an investment. And only after I redeem my investment in my bank account will the profit be accountable.

What do you guys think? Any comments?