Hey guys,
I know there are few threads discussing about the taxability of Bitcoins in India already however I would like to raise some different concerns. If you are Crypto Earner too, must read the whole post. I tried to be very informative by taking my own case as example:

Upto the PY 2017-18, Exchanges were operating in India. I used to sell my Bitcoins on Zebpay and Unocoin. I am not a trader, I haven't bought Bitcoins directly from my bank account ever except once in 2016 when I bought Ethereum worth few thousands in rupees. So I fill my Income Tax return as an income earner. I showed Bitcoin earnings as income and filed it as the professional receipts under Section 44ADA.

But that's not possible from PY 2018-19. Why? Because Exchanges no longer operate in India. Now my Bank Statement doesn't have a separate record of incoming-remittance as it used to be earlier when credits were marked from Zebpay or Unocoin. It was easy for me to categorize any credit as income because it was from Zebpay's bank account or Unocoin's Bank Account. But in past year I only used P2P. Now when we sell on P2P, the amount in bank is credited by some other buyer who is also Indian resident. Now in this new system, it is impossible to show Bitcoin earnings as income because buyer is not your employer, not a medium like Zebpay and not connected to your work at all.

In such a scenario I can only see following ways out:
1. I should file my income as Capital Gains where I can mark Cost of Acquisition to be NIL and file either STCG or LTCG on whole amount which has been credited to my account in previous year from buyers.
2. Carry on with my existing practice of showing credits as receipts and pay tax under PGBP. However, in this case I won't be able to provide any bill if I received Notice from Income Tax Department.

Are you facing the similar situation? If yes, then what have you decided. If no, then too share your views. Let's have a quality discussion as it is serious matter for Crypto Earners in India.