Currently, the cryptocurrency market in India is grappling with several tax regulations. Firstly, a 30% tax rate is levied on cryptocurrencies from the beginning of April and 1% TDS from 1st July. The new taxation has already taken a toll on crypto investor confidence and trading volumes have dropped significantly. However, in a big relief for crypto investors, they can invest in cryptocurrencies without paying Tax Deduction at Source (TDS) on their investments. The answer to their solution to enjoying the crypto market is a Systematic Investment Plan (SIP). India’s leading cryptocurrency exchange and largest crypto SIP platform Bitbns on Tuesday introduced a new tax shield. Under the new launch, an investor will have zero TDS on his SIP investment in cryptocurrencies.
Bitbns initiative aims to remove taxation burden from investors while encouraging them to venture out sip To take advantage of the benefits of rupee cost averaging to counter volatility.
The exchange’s BitDroplet is allowing investors to invest in cryptocurrencies through SIP in a simple and secure manner. It also provides a one-of-a-kind investment calculator, wherein investors can calculate the value of their SIP investment for the appropriate investment tenure.
According to the statement from BitBans, investors who have availed SIP for a minimum period of 12 months can now invest seamlessly without worrying about payouts. TDS, While there is no minimum tenure for redemption, Bitbuns will bear TDS for SIP investments redeemed after 12 months. The leading crypto SIP platform in India is also the largest SIP platform in the country with over 200,000 active folios. The exchange also announced the introduction of 19 new tokens on its SIP platform, giving investors more flexibility in their SIP investments.
Gaurav Dahake, Founder and CEO, Bitbuns, said, “Bitbuns strongly believes in creating and creating exciting new product opportunities for its investors, and we are delighted to introduce TDS-free SIP plans to our customers. We believe that this is a great time for investors to take advantage of the ‘Buy at Dip’ strategy and thereby maximize their profits. A SIP approach would be ideal as it is one of the best and most efficient investment strategies. One is. Regular and timely buying enables an investor to get a better price point for entry even in the midst of high volatility.”
“Our TDS-free SIP schemes will encourage investors to take advantage of an efficient wealth creation model while avoiding the burden of TDS. Apart from mitigating risk, it will also aid in portfolio diversification and reinvestment of returns, so as to leverage the power Compound and generate attractive returns through long-term lock-in of investments,” Dahake said.
Like SIP in mutual funds, crypto SIP also enables an investor to invest a fixed amount in crypto at regular intervals. Investors can avail daily, weekly or monthly installments depending on their investment potential.
Investing in Crypto SIP can start with as little as While automating and scheduling regular purchases of 75 popular crypto-assets such as bitcoin and ethereum, among others.
SIP investments at regular intervals allow users to take advantage of superior price points, benefit from rupee-cost averaging to counter market volatility and reduce risk over time. Thus, compounding returns will allow investors to build wealth efficiently through long-term investments.
Moreover, through the SIP route, investors can diversify their capital investments instead of making lump sum purchases, thus further reducing the risk.
From 1st July all cryptocurrency transactions will attract 1% TDS, whereas in direct selling TDS will be fully borne by the seller, in case of trading one cryptocurrency for another, TDS will be levied on both the parties involved.