I am planning to invest through Coin in SIP and Mutual Funds mode. However, I am confused and concerned about withdrawals. I do not want to pay tax and want to leverage maximum benefit of Long Term Capital Gains. I have the following modes of investment:
- Multiple SIPs with varying number of years or months. At the end of the term, say for example, a 2 year term, if I redeem the whole contribution of SIP how am I taxed? How do I withdraw the money after 2 year term is completed so that I am not taxed?
- I am trying to build a corpus by investing into Mutual fund contribution with irregular surplus funds which I acquire. Say I start with 5k, after 3 months I add 8k, and after 4 more months (7th month from the policy start) I add 10k. At the end of the year, the total contribution to corpus is 23k. In the 13th month I would want to withdraw some amount for an irregular need. What is the maximum amount which I can withdraw in the 13th month so that I am not taxed?
It would be really helpful if Coin by itself indicates it’s users about what amount of the fund can be withdrawn tax free and what part of the fund will be taxed if it is withdrawn. This will really give huge control over our funds withdrawal.
On a side note, I really hate paying taxes on the money which I have grown using the money which is already taxed! This rule in itself is absurd in my opinion and I am sure I am not the only one to think like this!!
Raj Pawan G