In most cases, I didn't hold bitcoin for long term. Can I count it as Capital gain too, I'm not much expert on these stuff. Is there any limit which will not be counted as capital gain even if I have gained a little profit?
It will be counted as Capital Gains even if you sell an investment after 5 minutes of buying if you made the profits. That is why Capital Gains are categorized as two types: Short Term Capital Gains or STCG and Long Term Capital Gains or LTCG. If you sell investment after holding it for more than 3 years then it is LTCG and if you sell it within 3 years of purchase then it is STCG. In case of securities like shares and stock, we consider 1 year holding period. If you sell security after 1 year of purchase then it is LTCG and vice-versa. However, in India Bitcoin is not considered as security so the rule of 3 years will apply. So if you bought BTC on and after 1st April, 2016, it will be STCG for you.
The taxable rate in case of STCG is as per Income Slab rate i.e.:
5% for 2,50,000 - 5,00,000 rupees
20% for 5,00,000 - 10,00,000 rupees
30% for amount bigger than 10,00,000
The taxable rate in case of LTCG is flat 20% no matter what amount. Plus you also get benefit of indexing, hence you can inflate the cost of purchase and show less CG.
Any other doubt? Feel free to ask.