What are the benefits of liquid fund when it is charged tax on it
As I understand liquid fund are categories as Debt Funds and if you sell before three yrs ( short term)you need to pay the regular tax on benefits as per your income slab.
if you sell after three years(long term) you will get regular tax rate minus indexation ( kind of inflation rate declared by govt).
Only beneficial if you are coming in the 30% bracket.
How? Only beneficial if you hold or 3 years or more