Hi @Quicko
Can you pls confirm the tax treatment and period of holding of gold bees and liquid bees. Do they fall u/s 112 proviso 10% without indexation?
In my zerodha tax pnl, period of holding of liquid bees is from dec 2021 to jan 2023 and its given in Long term sales tab. Is it correct?
Hi @sachindei65
The tax treatment of liquid bees and gold bees are different,
Equity ETFs – ETFs that are invested in equity-oriented instruments.
Other ETFs – ETFs include, such as Gold ETF, International ETF, Debt ETF, etc.
Yes, the stated information is correct, as, if Liquid Bees are held for more than 12 months, they are considered as long-term capital assets and are taxed at 10% above â‚ąlakh.
Here’s an article on ETF - Tax on ETF (Exchange Traded Funds) in India - Learn by Quicko
they are taxed u/s 112A LTCG ?
Quicko has replied hurriedly.
LB will not appreciate, instead their payout of dividend is in units but the TDS will be deducted periodically, eg. weekly dividend payout/quarterly TDS.
Treat the LB dividend units in cash value like you do with FD interest. FD doesn’t have LTCG and NO indexation etc and is accrued and taxed in same year that is paid out. So in short add it to your annual income.
Gold ETF falls in other category, ie. 3yrs for LTCG and whatever is in the article
Thankyou for replying! Many opinions are prevailing among people about its taxability. Most oftenly people are of the view, that its holding period is 3 years for LTCG and taxed @ 20% with indexation and STCG basis slab rates.
In Zerodha Tax PNL, liquid bees are coming in Long term trades where holding exceeding by 12 months. Not sure how they are coming in Long term? may be @Quicko can again recheck their answer above.
Thanks
@Quicko can you double check this. You are saying LB over 12 months becomes LT ? but debt instruments are 3 years?
exactly and the rate of LT also it says like 112A LT which is for equity
Apologies for the confusion in our previous response. The answer was partially correct.
Liquid Bees are categorized as Other ETF’S. If Liquid Bees are held for more than 36 months, they are considered as long-term capital assets and subject to tax at the rate of 20% with indexation.
Appreciate your understanding. Let us know, if you have any further questions.
Then why in zerodha report PNL, its showing LT trades with period of holding more than 12 months but less than 3 years?
see what is entered in “Equity” sheet.
There is LT and ST table. in this sheet you only have holding period.
in Equity sheet, the same rows sum is coming in LT trades for liquid bees
