Suppose i invest in a dividend option of debt mutual funds (non-liquid) & after 1 month or 2 months, i redeem it, should i pay short term capital gains on the proceeds OR does it not apply for dividend options.
I heard from on of my frnd working for a MF company that there is no need to pay any taxes on the redemptions of a debt mutual fund (non-liquid) witin 12 months.
B4 that, i was thinking only dividends are tax free in the hands of the investor, never knew that redemptions in dividend schemes are also tax free in my hands.
So could you ppl confirm it?