Centre likely to lift veil on taxing NFT as virtual digital asset

Likely to release framework ahead of first advance tax instalment

Ahead of the first due date of advance tax payment on June 15, the government is likely to release guidelines on what will be covered within the ambit of virtual digital assets (VDA).

To remove any ambiguity in the recently established tax framework for asset holders, the Central Board of Direct Taxes (CBDT) is currently preparing guidelines, said government officials in the know.

The apex direct tax body will define non-fungible tokens (NFTs) and whether or not they fall within the purview of VDA. It may also clarify the basis of NFT valuations, keeping in mind volatility in the space.

An NFT is