Indian crypto exchange Bitbns announces zero TDS on crypto SIP investments

Investors look forward to avail of an efficient wealth creation model on their crypto SIPs via Bitdroplet

  • Published:
  • 13/07/2022 02:08 PM

Image: Bitbns

Bitbns has announced zero TDS on its SIP crypto investments. This move is an industry first for crypto investors in India. According to the company, the initiative aims to reduce taxation while encouraging investors to open crypto SIPs to take advantage of the benefits of rupee cost averaging to combat volatility.


"Investors availing of SIP for a minimum period of 12 months can now invest seamlessly without worrying about paying TDS. While there is no minimum tenure for redemption, Bitbns will bear the TDS for SIP investments redeemed after 12 months," Bitbns said in a press statement.

Bitdroplet is a Bitbns platform that allows investors to invest in crypto using SIPs. Investors who use SIP for at least a year can now invest without having to worry about paying TDS. While there is no minimum redemption period, Bitbns will pay the TDS on SIP investments redeemed after a year.


Crypto SIP is similar to mutual fund SIP. It enables you to invest a set amount of money in crypto at regular intervals. Depending on their investment appetite investors can choose daily, weekly, or monthly payments depending on their investment appetite. The SIP route allows investments as low as Rs75 per month while automating and scheduling regular purchases of popular crypto-assets such as Bitcoin and Ethereum, among others.

There are over 2,00,000 active crypto SIP folios on the platform. The exchange has announced plans to launch 19 new tokens on its SIP platform, giving investors more options for SIP investments.

Talking about the initiative, Gaurav Dahake, founder and CEO of Bitbns, said, "A SIP approach would be ideal as it is one of the best and most efficient investment strategies. Regular and timely purchases enable an investor to avail a better price point for entry even amid high volatility.”

He added, “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."

According to the new taxation rule, all crypto transactions will be subject to 1 percent TDS beginning July 1st. While TDS is entirely borne by the seller in direct selling, TDS is charged to both parties involved in crypto trading - the buyer and the seller. According to the February 2022 budget announcement, there will be an additional 30 percent tax on crypto returns.

The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash