NFTs, DAOs & Web3

How are NFT airdrops taxed in India?

In India, NFTs generally fall under the Virtual Digital Asset (VDA) regime, so a received airdrop is typically treated as income at its fair market value when you receive it, and any later sale is taxed at a flat 30 percent on the gain, plus applicable surcharge and cess. A 1 percent TDS may also apply on transfers above the threshold. For example, an airdrop worth 5,000 rupees on receipt is income now, and a future sale above that value attracts the 30 percent rate. Tax rules change and depend on your situation, so confirm current law with a qualified advisor.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.