Dividend on Liquidbees - As per Section 194K, TDS should be deducted on the dividend at the time of credit to the payee’s account or at the time of payment by any mode. Thus, TDS must be deducted even if the dividend is paid in the form of units and not cash. TDS at 10% (7.5% for FY 20-21) should be deducted if the dividend exceeds INR 5,000.
Sale of Liquidbees - TDS is not applicable to Capital Gains from the sale of liquid bees. Investors should pay tax as per applicable rates of Capital Gains.
Read more here - Income Tax on ETFs
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