Taxation on cryptocurrency gain

Very recently, our Finance Minister, Mr Arun Jaitley, on being asked to comment on any decision proposed to be taken as regards crypto currency in general, has commented that, “Recommendations are being worked at. The government’s position is clear, we don’t recognise this as legal currency as of now,” .  Further, the Central Bank also has chosen to reinforce its earlier message to “users, holders and traders of Virtual Currencies (“VCs”) including bitcoins regarding the potential economic, financial, operational, legal, customer protection and security related risks associated in dealing with such VCs.”

The government will come up with a notification soon to dispel the ambiguity around the legality of bitcoins, their taxability and disclosure requirement of bitcoins.

Without any such clear picture, it is likely to be taxed under head IFOS,,,,, with 30% tax margin.....

Ideally, ITR 3 (AY 2017-18), is suitable.

Depending upon occassional hours vocation, or low amount receipt, ITR 1 can be filled.