On cryptocurrency investments, 30% tax on capital gain and 1% TDS have been implemented from 1st July 2022. After this huge tax implementation crypto investors started disappearing from Indian crypto exchanges. But now the leading crypto exchange in India, Bitbns has announced zero TDS (Tax Deduction at Source) on crypto SIP investments through its new platform Bitdroplet. At Bitdroplet you can start your SIP in Bitcoin. You can invest as little as ₹ 100 on a daily, weekly on monthly basis.
What is Crypto SIP?
Crypto SIP is similar to normal SIP like regular SIP in mutual funds, where investors can invest systematically in cryptocurrencies at regular intervals. In crypto SIP investors can invest any amount as low as ₹100 daily, weekly or monthly basis. Investors can select Bitcoin, Ethereum, and other available crypto assets for SIP.
Bitbns said this initiative aims to reduce the taxation burden from their investors. This scheme will encourage the investors to start investing to take the benefits of rupee cost averaging to counter volatility.
While speaking to Bitbns spokesperson they said, “Investor’s availing of SIP for a minimum period of 12 months can now invest seamlessly without worrying about paying the TDS,” the company said in a press release. While there is no minimum tenure for redemption “Bitbns will bear the TDS for SIP investments redeemed after 12 months.”
As per the new taxation rule effective from 01 July 2022, on all crypto transactions sellers has to pay 1% TDS. In the case of trading one virtual currency for another, both parties (buyer and seller) have to pay 1% TDS.