Still not paid taxes on Bitcoin gains? I-T notice could be on the way

Based on the holding period, you have to pay short-term or long-term capital gains tax

While virtual currencies like Bitcoin are gaining popularity, there is still lack of clarity on how they should be taxed. Many buyers of cryptocurrencies, therefore, don’t pay tax on the gains they make on selling them.

Software developer Pawan Bharti recently sold Bitcoin worth Rs 55,000 after his investment doubled. “Neither my friends nor I am aware that we need to pay tax on these gains,” says Bharti. He is planning to invest the money in fixed-income instruments.

Tax experts, however, say that investors are obliged to pay tax on their gains in virtual currencies. “What investors don’t realise is