Hi Sree,
I have the following queries ?
1. For NIL tax on LT capital gains on Liquid fund, the lock in period is 36 months. Is my understanding correct ?
2. If Yes, then ELSS clearly provides much better returns for a period of 3 years than liquid funds. Why one should invest in Liquid funds at all if he / she doesn’t want to do tax calculations(in case of redemption before 36 months) for liquid funds redemption.
Best Regards
Sachin
1 Answers
Hi,
1 & 2 - Three year period is correct but the LTCG on debt funds are subject to taxes.
Kindly read :
https://www.relakhs.com/mutual-funds-taxation-rules-capital-gains-tax-rates-on-mfs-fy-201516/
https://www.relakhs.com/emergency-fund-importance/
https://www.relakhs.com/list-of-best-investment-options-schemes-in-india/
Please login or Register to submit your answer