In November of last year, Bollywood celebrity and Indian legend Amitabh Bachchan reportedly paid over US$130,700 in goods and services tax (GST) on the sale of non-fungible tokens (NFTs), according to reports.
Bachchan’s NFTs, are accessible on the beyond life. club website is said to have sold for over US$966,000 in an auction held by Beyondlife, a joint venture between Rhiti Entertainment and GuardianLink.io, and would be subject to 18 percent GST.
The ‘Madhushala’ NFT collection, narrations by the actor of poems penned by his father Harivansh Rai Bachchan, and vintage posters containing seven autographed posters, among other things, were among the items in the collection.
After Finance Minister Nirmala Sitharaman suggested revisions to the Income Tax Act that included NFTs as virtual digital assets, India’s tax authorities launched investigations and issued tax evasion notifications to investors trading in cryptocurrencies and NFTs.
This isn’t the first time Bachchan has found himself in the sights of the IRS. When he bought land in his home state of Uttar Pradesh in 2010, he claimed his occupation as a farmer to comply with local rules demanding a change in the land’s usage for cultivation. Agriculturists are exempt from paying taxes on farm income.
Several Bollywood actors and celebrities, including Salman Khan and Manish Malhotra, as well as athletes Zaheer Khan and Rishabh Pant, have invested in the NFT marketplace in the hopes of making money by auctioning products on the platform.
NFT stands for “non-fungible token. An NFT is a digital asset that binds ownership to unique physical or digital assets, such as pieces of art, real estate, music, or movies, at its most basic level.
NFTs are regarded as collectibles in today’s world. They’re bought and sold over the internet and serve as digital evidence of ownership for every specific object. NFTs are securely recorded on a blockchain, the same technology that underpins cryptocurrencies, ensuring that each asset is unique. It may also be more difficult to change or counterfeit NFTs thanks to the technology.
NFT sales reached $2.5 billion in the first half of 2021.
Also Read: Vignesh Sundaresan: Owner of the most Valuable NFT in the World
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