ITR filing 2022-23: TaxNodes announces free Polygon-backed NFT giveaway for taxpayers

TaxNodes, an online platform for cryptocurrency tax management solutions, has said it would offer complimentary Non-Fungible Tokens (NFTs) to all premium customers who file their Income Tax Return (ITR) through their platform. The crypto tax computation platform has joined hands with Polygon Technology, an NFT exchange platform, for this initiative.  

The company said the innovative initiative is aimed at bringing Indian users into the realm of Web3.0.  

“Taxpayers in India who choose TaxNodes for their tax filing needs will not only enjoy a seamless and efficient experience but also receive exclusive benefits and priority access when filing their ITR with TaxNodes from next year. This unique collaboration combines presents an exciting opportunity for Indian taxpayers to embrace the future of digital assets and blockchain technology,” TaxNodes said in a statement on Tuesday. 

To avail the offer, taxpayers need to sign up on the TaxNodes platform and provide their ITR acknowledgement number. Upon completion, the taxpayers will receive a complimentary NFT as a gesture of appreciation. These NFTs, maintained on the Polygon chain, can be securely transferred to the taxpayers’ digital wallets.  

“As we witness the rapid rise of NFTs and the increasing interest in Web3.0, we, at TaxNodes, are thrilled to embark on this exciting journey alongside our esteemed partner, Polygon. Our vision has always been to empower our users with cutting-edge solutions, and with this innovative initiative, we aim to extend that empowerment to the world of blockchain and digital assets,” said AvinashShekhar, CEO & Founder, TaxNodes. 

“We look forward to having TaxNodes utilise the blockchain for use cases. By introducing Indian taxpayers to NFTs and demonstrating the potential of on-chain experiences. By offering complimentary NFTs, I believe there is a world where people can see utility and be inspired to explore the crypto world further,” Sai Krishna V K, senior vice-president, Polygon Labs, said. 

NFT regulations in India 

The regulatory landscape for NFTs is currently evolving. In India, there are no laws specifically regulating commercial dealing in NFTs.  

However, the Income Tax Act, 1961 has been amended to include NFTs under the definition of virtual digital assets (VDAs). Income generated from trading in NFTs is consequently taxed at 30 per cent.    

Besides, no deductions will be allowed except for the cost of acquisition. Furthermore, a TDS of 1 per cent will be applicable whenever there is a sale or transfer of crypto assets or NFTs. 

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