Buying NFTs may get more expensive for Indians as the government mulls over double taxation
Non-fungible tokens(NFTs) in India may be subject to double taxation, according to a report by the Economic Times.
- Not only will NFTs be subjected to tax under the
Goods and Services Tax( GST) but also the equalisation levy, which is normally reserved to foreign corporations.
- Earlier this month, India’s Finance Minister Nirmala Sitharaman had clarified that the equalisation levy does not apply to investors — not to e-commerce companies.
Sources told the Economic Times that buying a
The idea also made the rounds when it came to cryptocurrencies being taxed in India, but the speculation was shot down by India’s Finance Minister, Nirmala Sitharaman, last month. “Equalisation levy is imposed on e-commerce operators, not on the investors,” she explained during the Monsoon Session of Parliament on July 27.
AdvertisementThe controversial levy, also called the ‘Google Tax’, has historically only been imposed on foreign companies — like Amazon, Facebook and others. The logic behind the tax was for these companies to compensate the Indian government for earnings revenue from Indians through online ads.
If double taxation does indeed come into effect, the adoption of NFTs in India could get slower than what has been seen over the span of this year. There is also ongoing debate over the value of these digital assets. Not only are they volatile, as with cryptocurrencies, but they’re also entirely speculative — as with works of art and qualitative assets in real life.
What is an NFT?
The blockchain-based digital collectibles have been making headlines not just for their high valuations, but also due to new use cases popping up as a result of the pandemic.
In a world where social distancing and traveling are restricted, being able to attain collectibles online has been a popular choice for both the sporting world and its fans.
An NFT, as its name implies, is non-fungible. In technical terms, each NFT is a unique code or blockchain-based digital file. This means that one NFT cannot be exchanged for another like with cryptocurrencies, where one Bitcoin is identical to the next, aside from ownership.
AdvertisementThe world’s largest platform for selling NFTs, OpenSea, saw trade volume surge 950% in the last 30 days to hit $1.22 billion, according to DappRadar.
NFTs are growing rapidly in India
In India, NFTs may not be the crypto investment of choice for everyone, but the rich kids are using them to diversify their portfolios. And, as seen globally, NFTs are also emerging as a new avenue for Indian artists to showcase their work and generate revenue.
AdvertisementIndie pop icon
These are only a few of the 160 pieces of digital art that the WazirX-backed platform sold within a month of its launch in June.After its initial success, the NFT marketplace launched collectibles solely focused on athletes participating in the Tokyo Olympics this year. The company has mined GIFs, artwork, and other digital mementos to capture the historical wins seen in Japan.
In addition to WazirX’s platform, NFTically is another NFT marketplace available to Indian investors, which also allows them to set up their own shop if they don’t want to operate on
Hacker behind $610 million crypto hack conducts AMA — claims returning the money was always ‘a part of the plan’
Crypto markets are recovering, and mining companies in North America are raking in the gains
Popular on BI
- Realme GT Neo 2 5G review: Great performance, fine display but camera needs work
- Cisco says a company 'leader' who encouraged TikTok followers to report strippers to the IRS is no longer employed at the company
- A half-mile installation just took 20,000 pounds of plastic out of the Pacific - proof that ocean garbage can be cleaned
- G7 leaders favour CBDCs provided they ‘support and do no harm’ to central banks
- India's farmers protest takes a gruesome turn with a chilling murder at the scene — here’s the sequence of events
- Bizarre! Shubhman Gill was brought back to bat after being declared out
- Ruturaj Gaikwad and Faf du Plessis — amazing data on how the two openers led CSK to IPL 2021 championship
- Budget and safety top criteria for Chennai households during festive season:LocalCircles
- India T20 World cup Jersey
- Photo Editors Apps
- Advantage Club Hiring
- Best Indian Companies
- Dussehra Messages
- Punit Goenka
- Motorola Edge 20 Mobile
- Google TV stick vs Amazon Fire TV stick
- Oneplus 9rt smartphone
- Samsung Galaxy M52 review
- Nykaa IPO
- India Coal Crisis
- iPhone 13 vs iPhone 13 mini
- IRCTC Share price
- Maximum Sixes
- Tata Sons