Latest government updates carve the way for NFT adoption by enterprises in India

Non-fungible tokens (NFTs) are taking the world by storm. What started lightly in 2017 with collectible digital characters is now shaping economies. While NFTs have proved to be a force to be reckoned with, there has been much hesitance considering their long-term impact. Their association with social media had also led many critics to write them off as part of a grand scam.

However, recent developments prove that there are merits to NFTs that, though not many are aware, are gaining recognition from official bodies.

30% tax on any income generated through the transfer of digital assets.

Recently, India’s finance minister Nirmal Sitharaman announced plans to levy 30% tax on any income generated through the transfer of digital assets. She has also explained a move to allow a 1% tax deduction on payments made to buy digital assets at the source. What’s more, gifts in the form of digital assets will also be taxed.

While many question the move, it is also one of the first attempts in the nation to recognize NFTs as legit, though digital, forms of assets that can be exchanged and even taxed. Clear tax regulations also make it possible for the corporate sector to adopt it.

These new updates are happening at a time in which the younger generation of the nation is heavily involved in blockchain technology and NFTs. The involvement of the youth in this space is not limited to misguided investments with dodgy cryptocurrency platforms. Instead, there are now blockchain-based startups budding all over the country to implement innovative solutions that can boost blockchain developments like never before.

For instance, there are now small brands that work solely with blockchain companies to turn the tide against negative marketing about the platform. This has been helping young investors to make the right choices while testing the waters of digital asset management. There are also technical experts in the industry that have recognized the immense potential of blockchain technology in enhancing business processes and customer satisfaction. This is where blockchain-driven startup Authlink’s NFT services come in.

Creating digital twins for physical products

Creating digital twins for physical products has proven to be a feasible way to make them traceable and manageable throughout the supply chain system. The Authlink platform assigns NFTs for each physical product so that businesses can take care of related transactions online. This is a worthwhile function that companies across several industries, including luxury goods, FMCG, and electronics goods can make use of. Creating NFTs in this manner is quick, easy, and efficient, and can be highly beneficial for growing brands.

Developments like these that are happening in the country signify a green signal for NFT-based activities to flourish than ever before. Their impact is predicted to be positive in almost all aspects, and now is the time to wait with fingers crossed.

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