Quote from: hugeblack on Today at 05:28:28 PM

There is no legal/illegal legislation in India so you do not have to pay a tax on bitcoin as long as you store that amount in the form of Bitcoins and do not transfer it to Indian Rupee.
Whenever you convert your crypto to Indian Rupee and make some profit/income, you must pay taxes (According to Income tax.)

Since you are an investor and you process the transfer or withdrawal to your account once or several times during the financial year, you will benefit from Section 44ADA of Income Tax, So you don't have to keep any record. Just think about the total receipts and pay the tax at least 50% of the receipts.

you can read this example for more:

Quote

Example: I withdrew Rs. 10,00,000 during the financial year in my bank. Then I will show Rs. 10,00,000 as receipts from my consultancy business. As per Section 44ADA, I have to show my profits to be Rs. 5,00,000 or more (52-55% recommended), let say I show profit to be Rs. 5,20,000. Then I have to pay tax on Rs. 5,20,000 which will be around Rs. 14,000 or zero if I claim deductions of Rs. 20,000 or more (such as LIC premium paid, etc.).

Source and more info ----> https://bitcointalk.org/index.php?topic=5206607.0

Thanks!

Buying and selling also come to trading.

for example if i buy some alt coins like 1000 for $200 and hodl for 1 week.

and if i sell the alt coins 1000 for $500 for profit after 1 week.

Does i belong to trader.......? or investor please explain.

I want to invest in altcoins for example i want to buy eth and later after 1week i convert to another alt coins does i belong to investor or trader.

Does investor and trader have to file separate taxes in income tax or only when you convert to INR only i should pay the taxes for the converted INR transactions.....?