LiquidCase Taxation

[Meher_Smaran]

@Prasoon_Jain

Is my understanding regarding it being treated as debt income flawed or is it a mistake by zerodha’s p&l statement.

Both are correct

@Prasoon_Jain

I assumed as its a liquid fund it should be taxed at 30% (slab rate) but when I downloaded the tax p&l report from my zerodha console it is treating this 1200rs profit as stcg

STCG has two broad applicable rates.

• If STT is applicable, STCG is charged at a concessional rate of 20% after last july’s budget (it was 15% earlier )

• if STT is not applicable, STCG is charged at your slab rate. (Liquid ETFs fall under this category as there is not STT)

@Prasoon_Jain

I assumed as its a liquid fund it should be taxed at 30% (slab rate)

Your assumption is correct here as well