Bitbns Brings Tax Shield To Help Indian Investors Avoid 1% TDS On Crypto
- Bitbns has introduced a tax shield to protect investors from 1% TDS on crypto
- The Union Bill imposed a 30% tax on crypto profits and a 1% TDS on crypto transactions
Indian investors are worried about the government’s 1% tax deducted at source (TDS) imposition on each crypto transaction, and crypto trading platform Bitbns has recently announced Zero TDS on crypto Systematic Investments Plans (SIP), providing relief to investors.
With the new initiative, Bitbns intends to eliminate tax burden from the investors, encouraging them to undertake SIP to take advantage of rupee cost averaging to fight against volatility.
Bitbns will bear TDS for its users
According to the announcement, investors who use SIP for at least 12 months can invest without having to worry about TDS. However, Bitbns would bear the TDS for SIP investments redeemed after a 12-month period even if there is no minimum tenure requirement.
A project from Bitbns called Bitdroplet makes it simple and secure for investors to make SIP investments in cryptocurrencies. Investors can determine the value of their SIP investments for eligible investment tenures using the investment calculator offered by the Bitdroplet platform.
With more than 200,000 active crypto SIP folios, the exchange has planned to add a total of 19 new tokens to its SIP platform with positive feedback on Twitter, giving investors more flexibility when making SIP investments. Moreover, Bitbns claims to be the biggest crypto SIP platform in India.
“We strongly believe in innovating and building new lucrative product opportunities for its investors, and we are delighted to introduce TDS-free SIP plans for our customers,”
stated Gaurav Dahake, founder and CEO of Bitbns.
Dahake firmly believes that in order to optimize their long-term earnings, investors should buy the current dips. In his opinion, the most effective and efficient method to do this is to use SIP.
The new rule of 1% TDS came into force on July 1 for all crypto transactions, in addition to the already-imposed massive 30% tax on crypto profits.
What is Crypto SIP?
Similar to traditional SIP in mutual funds, crypto SIP enables regular investments of a fixed amount in cryptocurrency. Depending on one’s investment capacity, investors can choose from daily, weekly, or monthly installments. Users can take advantage of better price points by making systematic investments at regular intervals, which benefits from rupee-cost averaging to combat market volatility and reduce risks over time.
With the help of this method, along with long-term investments, investors can efficiently increase their profits while minimizing their risk by diversifying their capital and capital streams.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
