Zerodha Tax P&L for LIQUIDBEES

Zerodha Zerodha platforms
1

Team,

Is there any GAP in Tax P&L for LIQUIDBEES ? Is there any other thing need to consider while filing an ITR.
As per the following link “How are the dividends on Liquid ETFs and Liquid BeES taxed?” , the reinvested dividend should be treated as Capital gains whereas the initial dividend will be from dividend income. Apologize if my question confusing or may be very basic.

The reason I am asking is , after I sold LIQUIDBEES, both capital quantity + Dividend Quantity profit is coming under STCG. So bit confused on ITR process. could you please confrim.

2

Liquidbees in Console Tax pnl is shown similar to Equity. The dividend component is added at the zero price so any capital gains in Liquidbees should be treated as income from other sources as they’re taxed at the slab rates.

Having a separate section for income from other sources and Debt PnL in Console reports is in our todo.

3 Likes
3

So, in TAX P&L if its treated as equity, then while submitting the ITR, we need to remove that realized profit from STCG section right. could you please confirm.

4

Yes, you’re right.

5

Thank You