Tax implications of minting NFTs
Live MintWhat is the difference between the painting of Mona Lisa displayed at the Louvre and its replica sold at various gift shops? As per the amendment, a digital artist who transfers his digital art through an NFT route is unreasonably taxed at a much higher rate as compared to other artists. Computation of taxable income Generally, income received by artist are considered to be professional fees taxable under the head ‘income from business and profession’. However, in case of NFT’s, even if you are minting NFTs as a professional, its transfer will be considered to be income from transfer of digital assets and computation of income will be as per the provisions of section 115BBH of the Act. This means that even if, the value of the NFT sold is less than INR 2,50,000, which is the basic exemption limit, income tax @30% is payable on transfer of NFTs.
History of this topic
What is an NFT and how does it work? The ‘bitcoin for art’ explained
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