Cryptocurrencies take a downturn this week; here's how new tax rules impact investors
The tide in cryptocurrencies markets is keenly watched after India's stringent tax rules came into effect starting this month. The first full week of April turned bitter for crypto markets broadly. Bitcoin, Ethereum, Avalanche, Shiba Inu, BNB, and Litecoin among others have taken a steep downturn in the last seven days of trading. The new tax rules are seen to dampen investors' growth in the industry.
Although the 30% tax on crypto assets has come into effect from April 1, and also 1% TDS will be deducted from crypto-assets starting July.
Under the Finance Bill 2022, a 30% capital gains tax is imposed on crypto transactions. Further, a loss incurred during the transfer of the virtual asset will no longer be allowed to set off against any income calculated under the “other" provision of the IT Act as the word "other" has been removed.
Simply put, a loss from Bitcoin assets cannot be set off by income in Ethereum or any other virtual digital assets.
On Friday, Bitcoin is near $42,450. In the last 24 hours, crypto has tumbled by more than 2%. Broadly, the majority of cryptocurrencies have logged selling pressure. On the other hand, Tether, USD Coin, Binance USD, TerraUSD, and Dai have made marginal gains, while a crypto Monero surges even more than 5%.
As per CoinMarketCap data, the global crypto market cap is $1.96 trillion, a 2.05% decrease over the last day. The total crypto market volume over the last 24 hours is $69.34 billion, which makes a 15.15% decrease. Bitcoin’s dominance is currently 41.06%, a decrease of 0.07% over the day.
Meanwhile, in the past seven days, the CoinMarketCap data shows that the leader of the market, Bitcoin has nosedived by more than 8%. While Ethereum the second-largest crypto after Bitcoin
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