Bollywood megastar Amitabh Bachchan has paid more than $130,700 in taxes for auctioning his non-fungible tokens (NFT) after receiving a notice from the tax authorities, according to Indian media.
The superstar had to pay goods and services taxes (GST) on the digital collectibles he sold last year after India announced it was levying a 30% tax on digital assets like crypto, and categorizing NFTs as virtual digital assets under India’s updated Income Tax Act.
Cryptocurrency taxes in India are currently in the highest tax band and on par with gambling.
The Bollywood actor’s NFTs sold for almost a million dollars 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.
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India’s Directorate General of Goods and Services Tax Intelligence, Hyderabad division was investigating discrepancies in taxes, and sent a follow-up letter to the Bollywood star, prompting him to pay taxes on NFT sales valued at 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 relief that the government had not banned cryptocurrency: “A 30% tax on income from virtual digital assets, while high, is a positive step as it legitimizes cryptocurrencies," Avinash Shekhar, CEO of crypto platform ZebPay, told Indian media.