Regulators in many countries, including India, view cryptocurrencies as a combination of a bubble and a Ponzi scheme. The Reserve Bank of India has taken steps to dissuade Indian citizens from dealing in cryptocurrencies. However, last year’s surge in the price of cryptocurrencies has lured many taxpayers into investing or trading in it. Not only is a tussle relating to the fate of cryptocurrencies in India pending before the Indian Supreme Court, the income tax implications of cryptocurrencies are also looming. This article analyses the plausible income tax implications of dealing in cryptocurrencies in India.