Bitbns, a cryptocurrency exchange, has announced zero tax deducted at source (TDS) on its cryptocurrency systematic investment plans (SIPs), saying it will bear the burden on behalf of the investors. The company said that the initiative aims to remove the taxation burden while encouraging investors to open crypto SIPs to leverage the benefits of rupee-cost averaging to counter volatility.
Bitbns’s Bitdroplet platform allows investors to invest in cryptocurrencies via SIPs. "Investors availing of SIP for a minimum period of 12 months can now invest seamlessly without worrying about paying TDS. While there is no minimum tenure for redemption, Bitbns will bear the TDS for SIP investments redeemed after 12 months," says Bitbns in a press statement.
The exchange also announced the introduction of 19 new tokens on its SIP platform.
“We believe it is a great time for investors to avail the 'Buy at Dip' strategy and thereby maximize their profits," says Gaurav Dahake, founder and CEO, Bitbns.
Bitdroplet also provides an investment calculator, wherein investors can calculate the value of their SIP investments for suitable investment tenures.
Crypto SIPs are similar to regular mutual fund SIPs in terms of concept, wherein investors can put in a fixed amount of money in cryptos at regular intervals. These investments can be made in daily, weekly, or monthly instalments based on one's investment appetite.
The crypto SIP enables investments as low as Rs 75 while automating and scheduling regular purchases of popular crypto assets such as Bitcoin and Ethereum, among others.
According to the new taxation rule, effective July 1, all cryptocurrency transactions will attract 1 per cent TDS. While TDS in direct selling will be borne entirely by the seller, in the case of trading one cryptocurrency for another, TDS will be charged from both the parties involved. There will be a further 30 per cent taxation on the returns from cryptocurrencies, according to the budget announcement in February 2022.
