How 1% TDS will be charged on your non-fungible tokens. 10 points

livemint.com:

The cryptocurrency investment in India has witnessed another taxation called tax deducted at source (TDS). Generally, TDS applies to an individual's salary, income from deposits, savings schemes, securities, and other instruments. Bringing TDS on cryptocurrencies, non-fungible tokens (NFTs), and other virtual assets is an attempt of the Indian government to tighten the bolts for trading in this market which has no regulatory backups and comes with high risk.

The 1% TDS will be deducted from any Indian resident who is transferring their virtual digital assets (VDA). TDS exemption is up to ₹10,000 in a fiscal year applicable to any person other than a 'specified person'.

Kameshwaran Elangovan, Co-Founder & Chief Operating Officer at GuardianLink said, as per the Income Tax law and the circulars issued by the CBDT, the co-founder said, Jump.trade being the NFT Exchange that facilitates the trade of VDAs - is required to deduct this tax from its users during trade execution. He added, "We are then required to file TDS returns with the income tax authorities."

Jump.trade, a global gaming NFT marketplace introduced by GuardianLink.

GuardianLink co-founder from an NFT point of view has given an example:

Let's suppose, an NFT sale price is $100. Including an artist fee of 5%, services fee (including GST) of 2.95%, the net sales amount of the NFT token comes at $92.05 (sales price minus artist fee and services fee. Further, 1% TDS will be implied on the net sale amount, which will be $0.92 (1% of $92.05). Taking into consideration these factors, the actual amount deposited to the user would be $91.13.

NFTs are the cryptographic assets on a blockchain that are not exchangeable because of their nature of being distinguished from