In India Government to imply new tax rules for Bitcoin profits.

Bitcoins purchased as an investment!
Most of the people are investing in Bitcoins for making the gains on account of increase in the value of these coins thereby wanting to capitalize the price appreciation. In this particular scenario, it acquires the definition of a capital asset under Section 2(14) of the Income Tax Act and the resultant capital gains will be classified either as short-term or a long-term. Now whether the gains are short term or long term depends on the period these coins were held.

Under what head the profit of bitcoin will be taxed?
Govt. may implement 30% Tax on Bitcoin/Cryptocurrency profits upon holding it for less than three years (36 months) needs to pay the long-term capital gain tax. The applicable tax rate is 20% for the long-term gains kept for above 36 months and the benefit of indexation will be allowed as per the income tax act. And anything sold in less than three years will be termed as a short-term capital gain and will be taxed according to your applicable tax slabs, if your income is more than 10 lakhs then gains will be taxable at the maximum rate i.e. 30% plus cess and surcharge as applicable.

What if I dont pay Tax or not declare my investment?
India Government may obtain any possible measure to penalise those citizens, who hide their returns or profits on crypto investments. Through our sources, it is assumed that government may impose penalty of 50% to 200% upon not declaring or hiding profits/gains over crypto investments, along with 12% annual interest rate.