So I am a bit confused.
Do I have to pay taxes even if I don't convert my Cryptocurrency to INR ?
In this Financial Year, I only withdrew about 1 Lakh INR around December so do I have to pay taxes on that?
Can you please give me an answer @firepower
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IMHO, you don't have to pay tax on cryptos you hold since there is no regulations yet.
If you have made money out of selling your cryptocurrency then it is taxed as short-term capital gains(STCG). You need to declare that as income from other sources in your IT returns.
Have a look at the article from @firepower - https://www.thequint.com/voices/opinion/how-to-file-your-taxes-for-earnings-in-bitcoin
If that income is still not over 2.5 lakhs than I guess I am ok.
You will be taxed based on consolidation of all the income(salary, house rent, bank interest etc). If you are already declaring income from salary etc, STCG(profit from sale of cryptocurrencies) will also get included and taxed accordingly.
My only income right now is from Cryptocurrency plus whatever interest my Bank is paying which is almost nothing.
You only pay taxes on the INR deposits into your bank account. Any amount or kind of deposit to your bank irrespective of why you've received is generally considered as an income by law. Your auditor can help classify these while filing your returns.