Government Taxes on Bitcoin in India
Most of the Indian bitcoin businesses go by the analysis from Nisith Desai and Associates:https://www.zebpay.com/wp-content/uploads/2016/04/Bitcoins.pdf

Bitcoin is unregulated in India(not illegal or legal) and only points of dealing with the sovereign currency(INR) are taxable. Rules vary depending on if you mine, earn, buy, invest, sell or spend your coins and also with the parties in the deal.