Coin: Withdraw question to avoid Tax?

Hi,

Suppose I make SIP of Rs 1000 every month. At the end of 24 months I would like to withdraw first 12 months investment and leave remaining 12 months investment to avoid tax. Also I would like to keep my SIP in continue state. Is it possible through Zerodha Coin ?

Withdrawal works on first in first out (FIFO) basis. So when you withdraw funds, its deemed to the be the investment made during the first 12 months. I’m assuming, you are aware that you cannot withdraw SIPs in ELSS schemes, which mandatory needs to be invested for 3 years.

Not too sure of what you mean here, I’m assuming that you do no want to discontinue your SIP after withdrawing funds some part of your investment. If yes, its super convenient with COIN. You just place a redemption order for funds and continue your SIPs.

Thanks Karthik for your reply. I’m aware about both FIFO and ELSS withdrawal. My Question is very simple, Does Coin provide support for withdrawal from my non ELSS SIP based on FIFO while keeping my SIP in active state ?

Hi, for the non-ELSS schemes the units would be redeemed on the basis of FIFO. But, you would also have to check if there is an exit load applicable for each investment.

For more information on exit load you can check this link.

I make investment till 24th months, At 24th months I want to withdraw first 12 months investment while on 25th, 26th months and so on I continue my investment in SIP. Is it possible in Coin. I already know it is possible through fund houses.

Yes, this is possible. In fact, with COIN, you get a greater control on SIPs.

Thanks for your reply.