NFTs, DAOs & Web3

How are NFTs taxed in India?

In India, NFTs are generally treated as virtual digital assets (VDAs) under the Income Tax Act, so gains from transferring them are taxed at a flat 30 percent plus applicable surcharge and cess, with no deduction allowed except cost of acquisition. A 1 percent tax deducted at source (TDS) typically applies on the transfer above prescribed thresholds. For example, selling an NFT for a profit means the gain is taxed at 30 percent regardless of holding period. Tax rules change and depend on your situation; confirm specifics with a qualified tax professional.

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.