NFTs (non-fungible tokens) and other digital assets fall within the definition of a Virtual Digital Asset (VDA) under the Income-tax Act. Gains from selling or transferring an NFT are taxed at a flat 30% under Section 115BBH, plus surcharge and cess, with only the cost of acquisition deductible.
A 1% TDS under Section 194S applies on NFT transfers above the prescribed threshold. As with crypto, losses on NFTs cannot be set off against other income or other VDA gains and cannot be carried forward — so each transaction must be computed on its own.
We help NFT creators, traders and collectors classify income correctly (as VDA gains, or as business or royalty income where relevant), reconcile on-chain and marketplace transactions, account for TDS, and report in the Schedule VDA. We also advise on the GST position for NFT creators.
From minting and royalties to secondary-market sales and cross-border NFT trades, we make sure your digital-asset income is reported accurately and you remain fully compliant.
Our Strength Lies in Providing Real-World Practical Solutions
We plan every statutory audit around your AGM and ROC deadlines, so Form AOC-4 and MGT-7 are always filed on time. Our team works to a clear schedule and keeps you updated at each stage, so you never miss a statutory due date.
You get a thorough, Standards-compliant audit at transparent, competitive fees with no surprises. Because we deliver statutory audit, tax audit and ROC filing together, you save on duplicated effort and overall cost.
Our experienced team of Chartered Accountants, Company Secretaries and consultants handles the full compliance chain under one roof — statutory audit, tax audit, GST audit, internal financial controls and annual ROC filings — so everything stays coordinated and consistent.
AVS & Associates is a peer-reviewed CA firm founded by CA Vishnu Agrawal, with 25+ years of experience and five partners. We maintain the highest ethical and professional standards on every engagement, with complete client confidentiality.