Dear Sir , I have one query on arbritage funds
Pl. comment on below, on my planning to invest in Arbritage fund
I am planing to invest in liquid fund when I have to invest for 1-2 months.
I am planing to invest in arbritage fund -Dividend option (investment objective – Emergency fund in stead of saving account or FD )& when I have to invest for less than a year.As dividend on arbritage fund are totally tax free ,all my gain are tax free.
Pl. comment on my total gain is tax free understanding
I am planing to invest in Arbritage fund -Growth option(investment objective – Emergency fund in stead of saving account or FD ) & when I have to invest for more than a year.As gain on arbritage fund are totally tax free after 1 year ,all my gain are tax free.
1 Answers
Hi,
If you are investing in an Arbitrage fund for less than 1 year, and if you redeem within 12 months, any gains (capital gains) realized are not tax-free.
- The capital gain tax rate of 15% is applicable on Short Term Capital Gains of Arbitrage Fund.
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