Run-up to Budget 2025: Need to rethink taxation of Non-Fungible Tokens (NFTs)
In December 2021, a Mumbai-based fan acquired digital rights to items related to Sachin Tendulkar's 200th test match for US $40,000 in a Dubai auction. The Finance Act, 2022, introduced stricter tax regulations for NFTs tied to digital assets, taxing them at 30% with no deductions, unlike NFTs associated with physical assets.
In December 2021, a Mumbai-based fan acquired digital rights to items related to Sachin Tendulkar's 200th test match for US $40,000 in a Dubai auction. The Finance Act, 2022, introduced stricter tax regulations for NFTs tied to digital assets, taxing them at 30% with no deductions, unlike NFTs associated with physical assets.
