Hi ,
I too have the same apprehension about the taxability.
Basically, we are remitting money to family using "Crypto Currency" which is being recieved by our family members through a crypto currency Exchange in India, which transfers the INR value into our family member's account.
It is like any other remmittance sent to family in USD through a bank or money exchange like western union etc.
So why would it be taxable. Differnce in currency value in india is on reciept is not a taxable income for family members. They recieve INR equivalent in their bank.
The family members is recieving BTC/ crypto currency in his exchange wallet from his relative's Crypto currency exchange which could be overseas. i.e. if we send 10 BTC from exchange bought overseas , the family member is also recieving 10 BTC in his exchange. The Exchange gives credit of INR equivalent to family members in their India Bank account.
I wish the tax authorities in India clearify how this transaction is going to be treated. Request the vetran CAs on this forum for guidance.