Bengaluru, July 12
Bitbns, a cryptocurrency exchange, has announced zero tax deducted at source (TDS) on its systematic investment plan (SIP) investments in cryptocurrencies.
The initiative aims to remove the taxation burden on investors and encourage them to undertake SIPs to leverage the benefits of rupee cost averaging to counter volatility.
Bitdroplet is a platform by Bitbns that allows investors to invest in cryptos via SIPs. Investors availing SIP for a minimum period of 12 months can now invest without worrying about paying the TDS. While there is no minimum tenure for redemption, Bitbns will bear the TDS for SIP investments redeemed after 12 months.
The exchange also announced the introduction of 19 new tokens on its SIP platform. It also provides an investment calculator, where investors can calculate the value of their SIP investments, for suitable investment tenures.
Gaurav Dahake, Founder & CEO, Bitbns, said: “Our TDS-free SIP plans will encourage investors to avail the benefits of an efficient wealth creation model while evading the burden of TDS.” In addition to risk mitigation, it will also aid in portfolio diversification and reinvestment of returns, to leverage the power of compounding and generate attractive yields through long-term lock-in of investments, he added.
Crypto SIP is similar to regular SIP in mutual funds, allowing one to invest a fixed amount in crypto at regular intervals. Investors can avail daily, weekly or monthly installments, based on one’s investment appetite. The SIP route enables investments as low as ₹75 while automating and scheduling regular purchases of popular crypto-assets such as Bitcoin and Ethereum, among others.