Ask me anything about taxes on trading and investing

[vijethdinesha]

FYI, Zerodha does not correctly report tax P&L for LIQUIDBEES under capital gains.

Inaccurate capital gains for LIQUIDBEES in Zerodha Tax P&L

LIQUIDBEES distributes dividends in the form of additional units credited periodically. These units are treated as dividend income with TDS deductions reflected in Form 26AS and AIS, including pre-filled data in the income tax portal. The taxed dividend income is considered as the acquisition cost for the new units. So, all new units received should have a cost basis of Rs. 1000. Consequently, upon sale of LIQUIDBEES units at Rs. 1000 each, there should ideally be no capital gains, except for m…

Requesting you to acknowledge and see if @Quicko can do something to help us file capital gains correctly.