Taxmen crack down on bitcoin dealers in India: Key facts to know

Short-term capital gains tax of 30% is likely to be levied if bitcoin is held for less than three years

In the first such move against bitcoin dealers, the income-tax (I-T) department on Wednesday conducted surveys in Delhi, Mumbai, and Hyderabad. I-T investigative teams began surveys to gather information related to the dealer’s source of income, bank accounts, and tax liability, among others, amid tax evasion concerns.

 
Although a clarification from the government on bitcoin regulation and taxation is awaited, a source in the I-T department said capital gains tax must be paid on profits made from the sale of bitcoins. “Bitconis are not recognised as currency. So, capital gains tax liability arises at the time of sale of bitcoins