Why isn't India Buying NFT’s yet ?

In the Indian NFT market, there is a significant supply and demand disparity. There Are many NFT makers in this town, but there are few. Both parties have differing perspectives on the NFT prospects in India. Indian NFT developers have relocated to become NFT collectors and merchants, which is interesting.

Because it's your first, the first artwork has a lot of worth. This 'Genesis piece' has piqued the interest of many collectors. However, you must master the technology since it will be extremely beneficial to you. The most difficult aspect of NFT is that you must advertise yourself and brand yourself. Artists aren't always promoted by marketplaces." However, in terms of mainstream adoption, NFT collectibles have yet to find a product market fit in India. NFTs are used by a small number of Indian collectors for speculative purposes. This small Indian collector group states that high liquidity NFTs are preferred, with PFP (picture for profile) art and images doing well.

Is the buying and purchasing of NFT legal in India?

To comprehend the answer to the first point, we need first consider the legality of cryptocurrency, as NFTs use the same technology as cryptocurrencies (blockchain), and most NFTs are bought using cryptocurrency. Although cryptocurrency has existed since the beginning of the past decade, the major controversy about its legality began in June of 2018 when the RBI issued a circular instructing banks not to trade in cryptocurrencies. In Internet and Mobile Assn. of India v. RBI, the Supreme Court upheld the Central Bank's ruling. The freedom to trade is a basic right under Article 19(1)(f) of the Indian Constitution, hence cryptocurrencies were claimed to be lawful traders in this case. Despite the fact that appropriate limits may be placed on this freedom, the decision was made that the action taken to regulate bitcoin was not commensurate with the risks it posed. We might deduce from this that the Court did not feel that cryptocurrency trading was subject to the restriction imposed on the freedom to trade. Because NFTs are purchased and sold using cryptocurrency, the cryptocurrency's legality must be respected in order for NFTs to be lawful. 

NFTs Post Budget 2022 

In light of the recent excitement around NFTs and cryptocurrencies, the Finance Bill 2022 proposes amending Section 2 of the Income Tax Act of 1961 to include all NFTs and crypto currencies as "virtual digital assets." A new section 115BBH has been postulated, which necessitates gain from the sale of virtual digital assets to be taxed at a flat rate of 30%, with no deductions for expenses other than the cost of acquisition of such asset, no provision for set-off of losses against other income, and no carryover of failures from such transaction data. Therefore, capital gains originating from the sale of virtual digital assets are taxed differently than capital gains emerging from the sale of traditional capital assets, which are taxed at a lower rate of 20%, with provisions for indexation of the asset's cost and allowance of additional expenditures such as brokerage.

This action demonstrates that the government favours the centralised digital currency by the RBI, since it has resolved any doubts about the legality of cryptocurrency transactions by taxing them. At the same time, by taxing the income from such transactions at a higher rate, it clearly displays a desire not to promote other cryptocurrency transactions.

However, the high amount of tax imposed on digital asset transfer may be a deterrent to investors dealing in them, especially as transfer of digital assets is considered differently and is taxed at a flat rate of 30% without accounting for any expenditures, etc. Furthermore, the Finance Bill calls for a 1% tax deduction at source (TDS) to be granted when transferring digital assets. Furthermore, the transfer of digital assets in the form of a "gift" is not free from taxation.

NFT Platforms & Marketplaces To Buy NFTs In India:

• BeyondLife.club

This marketspace, spearheaded by Amitabh Bachchan himself, rose to prominence with the debut of his NFT Collection.

• Wazirx

WazirX is an Indian cryptocurrency exchange that is also debuting as a top NFT marketplace.

• Always First

Always First is a one-of-a-kind NFT store that has released NFTs of cricket legend Sunil Gavaskar.

• RARIO

Rario expands its NFT marketplace to include digital art of cricketers from across the world.

• Bollycoin

Namesake, this site is a marketplace recognised for launching NFT coins of major Bollywood celebrities such as Salman Khan.

Global Platforms

• OpenSea 

• Rarible

• Nifty Gateway

References 一

• The Cryptocurrency and IPR enigma, RNA, Technology and IP Attorneys (July, 20, 2021),https://rnaip.com/the-cryptocurrency-and-ipr-enigma/?utm_source=rss&utm_medium=rss&utm_campaign=the-cryptocurrency-and-ipr-enigma 

•  https://thedailyguardian.com/budget-2022-ayes-and-nays-in-taxation-of-digital-assets/ 

• https://www.mondaq.com/india/fin-tech/1128836/demand-to-clarify-legality-of-nfts-in-india-grows