How will taxation work if I withdraw from Liquid Fund after 1 yr ?

POSTED BY Jig ON December 2, 2014 5:09 pm COMMENTS (5)


I have put my liquid amount in hdfc liquid fund. Well it is now more than a year and if i will redeem all of them now, How the taxation will be? I have invested the same with kotak securities and i am an NRI.


5 replies on this article “How will taxation work if I withdraw from Liquid Fund after 1 yr ?”

  1. nsabhyankar says:

    What if the investment was done before the taxation change was announced?

    1. Anshuk Jain says:

      doesn’t matter

  2. Hemanth says:

    After the change of debt fund taxation in recent budget, if you redeem debt fund units before 3 years, you have to pay tax as per your tax slab.

    1. Jig says:

      How It will be treated after 3 yr?
      Also within 3 Yr period , it will be a TDS or i need to file return ? How it will be treated for NRI?
      Thanks for your reply and time.

      1. Hemanth says:

        If the switch happens before 3 years then the gains should be added to your income and taxed as per slab.
        If the switch happens after 3 years then you need to pay 20% after indexation.

        TDS will not be there and u have to file ITR. Not sure about tax treatment for NRI.

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