Complementary NFTs for Crypto Taxpayers in India: TaxNodes Hatches Game Plan

The move is intended to further the adoption of digital assets in India.

Written by Radhika Parashar, Edited by Siddharth Suvarna | Updated: 18 July 2023 18:05 IST

Complementary NFTs for Crypto Taxpayers in India: TaxNodes Hatches Game Plan

Photo Credit: Unsplash/ Shubham Dhiman

NFTs are digital collectibles built on blockchain networks

Highlights

TaxNodes has not clarified what these NFTs would be
Eligible people can claim their NFTs till July 31
Only 0.07 percent crypto holders in India paid taxes last year

Profits generated via crypto activities in India are subjected to a 30 percent tax deduction, a rule that most members of the Indian crypto community have been failing to comply with. In order to get more Indian crypto investors to pay their taxes, TaxNodes has decided to offer complimentary NFTs to taxpayers using its platform. The tax computation platform has partnered with Polygon Labs to offer these non-fungible tokens as incentives for crypto taxpayers.

The move is intended to further the adoption of digital assets in India, where the crypto community is expected to swell to over 156 million users by the end of 2023.

“Eligible users can claim their NFTs till July 31, which are minted on the Polygon Labs blockchain, by providing their ITR acknowledgement number. As an added incentive, they will receive an immediate 25 percent discount on their ITR filing for the year 2022-2023 through the TaxNodes platform,” the company said in an official release on Tuesday, July 18.

Crypto Firms Facing SEC Charges Find Hope in Ripple Ruling, Experts Say

In the absence of a set rulebook for crypto, India levied taxes on crypto profits last April hoping to be able to maintain some track record of crypto transactions, most of which are largely anonymous.

The aim was to identify potential defaulters and suspicious crypto holders, who could be engaging in unlawful activities like money laundering or terror financing.

India's decision to levy a 30 percent tax on crypto incomes along with one percent TDS on each crypto transaction was met with mixed reactions from India's crypto community. While levying taxes made crypto an official part of India's financial ecosystem, the tax bracket was criticised for being too wide. Several disappointed and confused crypto holders in India failed to file their crypto taxes last year.

Crypto, Metaverse Threats as Serious as Those Around Dynamite: Home Minister

A recent report by Divly, a Sweden-based tech research firm said that only 0.07 percent crypto holders in India paid their taxes last year.

It is only a matter of time before we know for sure if gifting NFTs as an incentive for paying crypto taxes could get more people to declare their holdings.

“We not only want to thank users for putting their trust in us for their IT computation, we also want to encourage them to be a part of the larger Web3 ecosystem by bringing in the NFT element on the Polygon blockchain. They will witness first hand, the value of this NFT and how to use them to avail many benefits and discounts on our platform,” said Avinash Shekhar, CEO and Founder, TaxNodes.

The company has already tied up with India's ZebPay and WazirX crypto exchanges to help their users compute their respective crypto taxes.

Will the Nothing Phone 2 serve as the successor to the Phone 1, or will the two co-exist? We discuss the company's recently launched handset and more on the latest episode of Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Cryptocurrency, India, Crypto Tax, Tax Nodes, NFTs

Radhika Parashar

Email Radhika

Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More