• Wed. May 25th, 2022

Bollywood actor paid over $130,000 in NFT taxes

ByHazel R. Lang

Mar 25, 2022

Bollywood megastar Amitabh Bachchan has paid over $130,700 in taxes for the auction of his non-fungible tokens (NFTs) after receiving a notice from the tax authorities, according to Indian media.

The superstar had to pay Goods and Services Tax (GST) on the digital collectibles he sold last year after India announced it was levying a 30% tax on digital assets like crypto and classified NFTs as virtual digital assets under the updated Indian Income Tax Act.

Cryptocurrency taxes in India are currently in the highest tax bracket and on par with gambling.

The Bollywood actor’s NFTs have sold for nearly $1 million on BeyondLife, an NFT marketplace in India, and faced an 18% GST tax. Bachchan’s NFT collections ranged from autographed posters to “Madhushala” collectibles of his recitations of the poetry of his father, Harivansh Rai Bachchan.

India’s Directorate General of Goods and Services Tax Intelligence, Hyderabad Division, was investigating the tax discrepancies and sent a follow-up letter to the Bollywood star urging him to pay tax on assessed NFT sales around $1 million.

Earlier this year, many Indian crypto entrepreneurs celebrated the government’s decision to impose the 30% tax on crypto and digital collectibles, expressing their relief that the government did not ban cryptocurrency. “A 30% tax on revenue from virtual digital assets, although high, is a positive step as it legitimizes cryptocurrencies,” Avinash Shekhar, CEO of crypto platform ZebPay, told Indian media.

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