India has a 30 percent tax deduction on profits generated through crypto activities, a rule that most members of the Indian crypto community have failed to comply with. In order to get more Indian crypto investors to pay their taxes, Taxnodes has decided to offer complimentary NFTs to taxpayers who use their platform. The tax calculation platform has partnered with Polygon Labs to offer these non-fungible tokens as an incentive for crypto taxpayers.
The move is aimed at furthering the adoption of digital assets in India, where the crypto community is expected to grow. 156 million users by the end of 2023.
“Eligible users can claim their nft up to 31st July, which are mined Polygon Labs Blockchain, by providing your ITR Acknowledgment Number. As an additional incentive, they will get an instant 25 per cent discount on filing their ITR for the year 2022-2023 through the Taxnodes platform,” the company said in an official release on Tuesday, July 18.
In the absence of a defined rulebook for crypto, India imposes tariffs tax on crypto turned profits last April in hopes of being able to maintain some track record of crypto transactions, most of which are largely anonymous.
The aim was to identify potential defaulters and suspected crypto holders who may be engaging in illegal activities such as money laundering or terrorist financing.
India’s decision to tax crypto income at 30 percent with one percent TDS on every crypto transaction received mixed reactions from the crypto community in India. The imposition of the tax made crypto an official part of India’s financial ecosystem, but has been criticized for being too broad of a tax net. Many frustrated and confused crypto holders in India failed to file their crypto taxes last year.
recently Reported by DivlyA Sweden-based tech research firm said that only 0.07 percent of crypto holders in India paid their taxes last year.
It is only a matter of time before we will know for sure whether gifting NFTs as an incentive to pay crypto taxes can motivate more people to declare their holdings.
“We not only want to thank users for trusting us with their IT calculations, but we also want to encourage them to be part of the larger Web3 ecosystem by bringing NFT elements to the Polygon blockchain. They will see firsthand the value of this NFT and how to use them to avail multiple benefits and discounts on our platform,” said Avinash Shekhar, CEO and Founder. taxnodes,
The company has already tied up with India Zebpay And WazirX Crypto Exchange to help its users calculate their respective crypto taxes.
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