You're NOT violating FEMA or any other law by encashing BTCs at Indian Exchanges yet. The same applies for mining bitcoins in India. As of now ordinary income tax applies for both cases.
What kind of taxation. If I am remitting money in my own NRE account , I dont pay any taxes on those amount. all the proceeds are tax free.
Intrested to know if I can buy BTC with USD/CAD and sell BTC in INR.
Then how will the tax play out. Do i pay tax in say canada or in India. There is no basis of paying in canada , because I never sold anything in CAD. And my INR deposited are technically remittance which are not taxed.