Looking at the ground reality, people, bitcoin in India still remains unregulated... The only thing we have in our hands is rumors... It is most unlikely the government will accept bitcoin as a conventional currency so it is likely to be an asset however we have no confirmatory words on that..
The amibiguity over the intent or purpose of bitcoins determines the tax you are liable to pay is naive... While traders having gains above a specified threshold have to pay 'income tax' derived from their business... If the intent is to buy and invest bitcoins in a venture... Capital gains are implied..
Even Under capital gains, there are two aspects:
Short-term capital gains is taxable as per relevant Tax-slab, which is 30% on income more than Rs 10 lakh.
Long term capital gains tax is 20%, but the time-period for investment should be at least 12 months. Hence, if a bitcoin trader holds his investment for a year, then it can be legally classified as long-term capital gains.
It's worthless to fuss about unless some guidelines and framework for taxation gets implemented..