Trading of bit-coin it is laible for tax audit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 October 2017 Hello sir,
sir my client business is purchase & sale of bit-coin. and same generate income from bit-coin.this type of income show in which head in income tax act???? Capital Gain Or Trading Income?? this business is legal?? can i done audit?? how can i recorded accounting entry ??

Please give me suggestion.

Amol S Joglekar

Amol S Joglekar (Expert)
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03 October 2017 01. it is a legal activity to trade in bit coin.
02. the intention of the person plays a major role in deciding whether it is business or capital gain.
03. if the intention of the person dealing in bit coin is to do business, then tax audit is required to be conducted subject to of course the limit of turnover as specified in section 44 AB

Querist : Anonymous

Querist : Anonymous (Querist)

04 October 2017 SIR, ALL BIT COIN PURCHASE IN CASH & ALL BIT COIN SALE THOUGH ZEBPAY APP . SIR HOW CAN I SHOW PURCHASE OF BIT COIN ?? BCZ MANY BIT COIN PURCHASE IN CASH..SIR PLEASE HELP . I CAN DONE AUDIT?/

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Amol S Joglekar

Amol S Joglekar (Expert)
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04 October 2017 can you please explain how did you manage to buy in CASH