I have some sale and purchase of LiquidBEES in the previous FY whereby transactions updated from Zerodha are being tagged as Equity transactions for the purposes of Capital Gains calculations. Because of this, I have 2 major doubts.
LiquidBEES as a product does not fluctuate in price, and the only returns are through issue of additional units as dividend (whereby TDS will be charged if dividend is >5K- which has been charged for me). Since there is no fluctuation in price (and entire return is in form of dividends which I have declared anyway), where does the question of Capital Gains arise?
If I assume that the constant price does not always hold true, and there are always some fluctuations (howsoever minor) from the constant price in day to day transactions, Capital Gains can still be calculated. But even in that case, are LiquidBEES to be treated as Equity ETF or Debt ETF?