# How liquidbees are taxed?

**URL:** https://tradingqna.com/t/how-liquidbees-are-taxed/162972
**Category:** General
**Created:** [March 28, 2024, 3:19pm UTC](https://tradingqna.com/t/how-liquidbees-are-taxed/162972 "2024-03-28T15:19:52Z")
**Posts on this page:** 2
**Page:** 1

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### Author: ![zhkas](https://tradingqna.com/user_avatar/tradingqna.com/zhkas/32/25913_2.png) [@zhkas](https://tradingqna.com/u/zhkas)
#### Post date: [March 28, 2024, 3:19pm UTC](https://tradingqna.com/t/how-liquidbees-are-taxed/162972/1 "2024-03-28T15:19:52Z")

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I am not booking i.e. not selling any Liquidbees, but they are deducting TDS which I can see in 26 AS.  
How are these supposed to be taxed?  
like in equity , if I don;t sell, any gain is not taxable, as they are just unrealized profit.  
and this liquidbees gain are also unrealized as I have not yet sold them.

Thanks

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### Author: ![tallerballer](https://tradingqna.com/letter_avatar_proxy/v4/letter/t/13edae/32.png) [@tallerballer](https://tradingqna.com/u/tallerballer)
#### Post date: [March 28, 2024, 5:12pm UTC](https://tradingqna.com/t/how-liquidbees-are-taxed/162972/2 "2024-03-28T17:12:56Z")

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> **[How are the dividends on Liquid ETFs and Liquid BeES taxed?](https://support.zerodha.com/category/console/reports/taxation/articles/dividends-on-liquid-etfs-and-liquid-bees)**
>
> How are the dividends on Liquid ETFs and Liquid BeES taxed?

LIQUIDBEES pays interest through dividends as units. So you cannot avoid taxation. They will pay dividends by giving extra units and TDS is automatically taken.

To avoid this, you can invest in Zerodha’s LIQUIDCASE. This does not pay dividends, but value of each unit (NAV) grows everyday (eg: 100 today, 100.2 tomorrow). So you only get gains when you sell. So tax is applicable only when you sell.