March 24, 2020
By Anjali Kochhar
Global star Amitabh Bachchan has paid a tax of Rs 1.09 crore (US$130,000) on the sale of NFTs (non-fungible tokens) worth Rs 7.15 crore (US$980,170) after receiving notice by the Directorate General of Goods and Services Tax Intelligence (DGGI).
While Bachchan has deposited the money, investigations are still ongoing, sources told Business Standard.
As per the report, Bachchan had entered into an agreement with Rhiti Entertainment Pte. Ltd, Singapore, for conversion of his content into NFTs by way of an auction.
These NFTs included a recital of Madhushala, a famous collection of poems written by his father, posters, and images.
The sale of NFT was able to collect Rs 7.15 crore and would attract 18% IGST.
NFTs are non-interchangeable units of data stored on a blockchain. The tax authorities have started cracking down on investors trading in cryptocurrencies and NFTs after Finance Minister Nirmala Sitharaman proposed changes in Income Tax Act classifying NFTs as virtual digital assets.
The NFT trend is picking up pace in India. Not just creators and collectors, celebrities including actor Salman Khan, designer Manish Malhotra and cricketer Yuvraj Singh entered the metaverse. Bachchan was one of the first celebrities to enter the NFT space.
Brands like MG Motors and T-series have also shown a growing interest in the NFT space.
Image: Wikimedia commons
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.