@siva , the question when does the investor start earning dividends from liquidbees purchase. Would it be immediately from the date of purchase or after T+2 days?
he wants to know if liquidbees purchased on Friday and sold on following monday earn any dividends? Since the liquidbees has not yet been credited to demat.
If one buys on friday and sells on monday- he won’t get interest as shares never reached his demat.
My bad, above my explanation is general like what will happen if one sell shares on ex dividend day.
In this case seller only get dividend and not buyer as shares never reached his demat.
So , after selling the liquidbees, the seller has to ask the dividend for T+2 days from his broker .
Correct ?
No need to ask, he will get it, even in cases if broker receives they will settle them, at least we do.
Am I am receiving cash in bank as dividend on ICICILIQ?
Is it even worth the effort of placing in liquidbees and then pledging given this rate of 3.5%? When you pledge, doesn’t Zerodha charge something for the period of pledge?
I have bought some liquidbees. Some additional units have been credited to my account. Could be dividend(?). What is the tax treatment/tax liability for these additional units?
Losses can be carried forward for 8 years to be set off against future profitsNo. Starting FY 2020-21 dividends from shares and mutual funds are taxed at slab rate.
They charge a minimum amount yo pledge the shares less than. 100 rs I guess
The dividend received from an Indian company was exempt until 31 March 2020 (FY 2019-20). However, the Finance Act, 2020 changed the method of dividend taxation. It also imposed a TDS on dividend distribution by companies and mutual funds. Thus dividend received on or after 1 April 2020 is taxable in the hands of the investor/shareholder.
Yes by losses we mean losses faced during trading using Liquidbees. Further, when you sell the units, it is considered as income from capital gains and is liable to tax as per special rates
Can you create ticket for this?
created. never got it completely resolved.
I am creating an emergency fund for which I was buying LIQUIDBEES. Is it a good idea or should I go with some liquid mutual fund?
I don’t like them vs other liquid/overnight funds
They have much higher expense (0.65% as per VR) + transaction charges + payment via dividend so entire interest is taxable ever year even if you don’t sell + headache of holding fractional dividends.
Liquid funds( i think overnight too) have 50k instant withdrawal, and 1 day to get rest. So can distribute between say 6 funds and you get 3L available instantly.
Only advantage of liquid bees that i can tell is that you can sell it immediately in market and buy something else for delivery on same day.
in the above link they say that
" * Liquid bees are considered as cash equivalents by the exchange, so the above 50% rule wouldn’t apply. So margin received from pledging liquid bees will be as good as having cash in your trading account."
