Crypto SIP in India: how a monthly crypto plan works and its tax

How it works

You choose an amount, say ₹1,000, and a schedule, weekly or monthly. The exchange buys automatically. When prices are low you get more units, and when they're high you get fewer. Several Indian exchanges offer automatic recurring buys.

Try it with real past prices: crypto SIP calculator.

Tax on a crypto SIP

• Buying doesn't create tax.
• When you sell, each lot's gain is taxed at 30% plus 4% cess.
• A loss on one lot can't reduce a gain on another. That makes your lot method important. FIFO and cost basis explained.
• 1% TDS is cut on the sale value and can be claimed back if you overpaid.

Risks to understand

• Crypto can fall 70% or more and stay low for years. A SIP doesn't protect against that.
• Fees and spreads on small, frequent buys add up. Check the exchange's fee per order.
• Keep SIP money separate from your emergency fund.

Questions to ask yourself

Is this money I won't need for several years? Have I covered insurance and an emergency fund? Am I comfortable seeing it fall by half? If you're unsure, speak to a SEBI-registered investment adviser.

Sources

• National Cyber Crime Reporting Portal (helpline 1930)
• Financial Intelligence Unit India (FIU-IND)

• sip
• investing basics