Indian film legend Amitabh Bachchan was forced to comply with the demand of the tax authorities, who paid attention to income from non-fungible tokens.
Amitabh Bachchan caught the interest of the IRS after selling his own NFT collection last year. In November 2021, Bachchan earned more than Rs 7 crores (about $917,000) from selling NFTs. According to Indian law, an 18% tax is charged on cryptocurrency transactions. After being notified by the Directorate General of Revenue of India (DGGI), the actor had to pay Rs 1 crore ($131,000) in tax, but the agency continues to check for any inconsistencies.
The collectible tokens in question were an image of Bachchan reading a book called Madhushala. These four-line poems were written by his father, Harivansh Rai Bachchan, an Indian poet and writer. The collection also includes “tokenized” moments from the actor’s personal and work life. NFTs were sold on the BeyondLife.club marketplace.
Bachchan became the first well-known Indian actor to dive into the world of digital assets, and his token sale broke NFT sales records in the country. According to the movie star, non-fungible tokens allow for new ways to interact with fans and expand the possibilities of interaction.
Recently, the number of investigations in India related to the trading of crypto assets has been on the rise. This comes after Indian Finance Minister Nirmala Sitharaman proposed a 30% tax on profits from trading digital assets, which should also apply to NFTs. However, Sitharaman warned that this should not be construed as giving crypto assets legal status. Nithin Kamath, founder of brokerage firm Zerodha, has suggested that if the proposal goes ahead, crypto trading volumes in India will plummet as taxes eat into a significant portion of investors’ capital.
Concerns about the use of NFT by celebrities are also expressed by the US Internal Revenue Service (IRS). The agency said that by encouraging people to buy tokens or promoting dubious NFT projects, authority figures only arouse the suspicion of regulators and tax authorities.
Source: Bits
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