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.

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