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Income from bitcoin(virtual currency) is treated as capital gain .?

sunit tyagi (accounts manager) (33 Points)

13 August 2018

One of My client have salary income and commission income and income From sale of Bitcoin .now my Question is that income from sle of Bitcoin (virtual currency ) is taxable or not in india,in india ,it is illegal . so i have confused to e filing of return .

which Itr form should i field ?

can i treat as a short term Capital Gain ?

Does Tax is Charge As 15 % ?

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dumb Nitish (171 Points)
Replied 13 August 2018

The safest option is to treat it as income from others sources, however there are some people who have been holding the crypto currency since very long time for them it can be treated as Capital Gain, short term if held for less than 3 years. If u decide to treat it as short term capital gain or income from other sources then tax rate will be slab rate. If the asset was held for more than 3 years it may be treated as LTCG and tax rate would be 20%

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Nikhil Kaushik (Fellow CA) (84944 Points)
Replied 14 August 2018

you need to File ITR -3.

With regards to treatment of bitcoin income, depends on your position on it - it can be treated as capital gains - taxable at slab rates (15% is applicable only for equity securities listed on Indian stock exchanges) or business income as may prefer.