LiquidBEES Taxation

Hi

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.

  1. 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?

  2. 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?

don’t want anyone to deduct the TDS !
in the “LIQUIDBEES” !

i want to submit : the form 15 H / G !

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whom should i submit the form 15 h/g ?

to the broker DP or to the nippon india company ?

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i am resident indian .

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@TeamQuicko Can you please clarify?

Hey @Laxmi_Navlani , can you please help here?

In LQBEES:

  1. The dividend units that get credited every week show up as DIVIDEND on FORM 26AS, which get added to income and taxed according to slab
  2. Also TDS is deducted as well on those dividends.

Why are we paying taxes twice?

Hey, the dividend you receive is a part of your taxable income. However, if TDS has already been deducted from it, you will be able to claim tax credits while filing ITR. Hope this helps

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Well, one thing I observed is, the dividends from liquidbees are showing up in Equity capital gains when I connect with zerodha. And when I integrate my ITR account, it gets added to dividend as well. So does that mean it gets added twice to my taxable income? One time as capital gains? And the second time as dividend income?