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 investors. The company said the initiative aims to remove the tax burden while encouraging investors to open crypto SIPs to take advantage of the benefits of rupee cost averaging to counter volatility.
Bitbns’ Bitdroplet platform allows investors to invest in cryptocurrencies through SIPs. “Investors who benefit from SIP for a minimum period of 12 months can now invest seamlessly without worrying about paying TDS. Although there is no minimum redemption period, Bitbns will support TDS for investments SIPs repurchased after 12 months,” Bitbns said in a press release. statement.
The exchange also announced the introduction of 19 new tokens on its SIP platform.
“We believe this is the perfect time for investors to take advantage of the ‘Buy at Dip’ strategy and thereby maximize their profits,” says Gaurav Dahake, Founder and CEO of Bitbns.
Bitdroplet also provides an investment calculator, where investors can calculate the value of their SIP investments for appropriate investment terms.
Crypto SIPs are similar to regular mutual fund SIPs in concept, where investors can invest a fixed amount in cryptos at regular intervals. These investments can be made in daily, weekly or monthly installments depending on the investment appetite.
SIP crypto allows investments as low as Rs 75 while automating and scheduling regular purchases of popular crypto assets such as Bitcoin and Ethereum, among others.
Under the new tax rule, starting July 1, all cryptocurrency transactions will attract 1% TDS. While the TDS in direct sales will be entirely the responsibility of the seller, in the case of exchanging one cryptocurrency for another, the TDS will be charged to both parties involved. There will be an additional 30% tax on cryptocurrency returns, according to the budget announcement in February 2022.