FOLLOW US

Facebook Twitter Linkedin Instagram Youtube
AVS & ASSOCIATES LOGO

NFT & Digital Asset Taxation in India

Pay the right tax on NFTs and digital assets in India. AVS & Associates handles 30% VDA tax, 1% TDS under Section 194S, and Schedule VDA reporting.

NFT & Digital Asset Taxation

NFTs and other digital assets fall within the definition of a Virtual Digital Asset (VDA) under Section 2(47A) of 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, no trading fees, gas fees, or platform charges count. 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 stands on its own.

Get Started

Who This Applies To

  • NFT collectors buying and later reselling on secondary markets
  • Creators earning primary sale proceeds and ongoing resale royalties
  • Traders running frequent NFT flips as a business activity
  • Anyone receiving NFTs as gifts, airdrops, or in exchange for services

What We Help With

  • Classifying your income correctly, as VDA capital gains, or as business or royalty income where that’s the better fit for creators and active traders
  • Reconciling on-chain wallet activity against marketplace statements, since the two rarely match perfectly on their own
  • Tracking TDS deducted under Section 194S and matching it against Form 26AS
  • Preparing transaction-by-transaction Schedule VDA disclosures, which don’t allow bulk or aggregated entries
  • Advising on the GST position for NFT creators, which depends on the nature and value of the supply and is still a developing area
  • Handling cross-border NFT sales, including where DTAA relief may reduce double taxation

Records You Should Be Keeping

  • Wallet addresses and transaction hashes for every mint, purchase, and sale
  • Marketplace statements showing sale price, platform fees, and royalty splits
  • Purchase records establishing cost of acquisition for each NFT
  • TDS certificates or Form 26AS entries for every transaction over the threshold

Why Select Us?

Our Strength Lies in Providing Real-World Practical Solutions

STRICT TIMELINE

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.

MINIMUM COST

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.

ONE STOP SOLUTION

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.

TRUST & RELIABILITY

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.

Frequently Asked Questions​

Yes. NFTs are Virtual Digital Assets, so gains on their transfer are taxed at a flat 30% under Section 115BBH, plus surcharge and cess.
Yes, 1% TDS under Section 194S applies on NFT transfers above the prescribed threshold.
No. Like other VDAs, NFT losses cannot be set off against other income or VDA gains, and cannot be carried forward.
In the Schedule VDA; creator royalties or active trading may be classified as business or royalty income where applicable.
NFT creation and sale can attract GST depending on the nature and value of the supply; we advise on your specific position.
They remain taxable as VDA transfers in India, with DTAA relief considered where foreign tax also applies.