POSTED BY July 12, 2014 7:13 pm NO COMMENTSON
My name is Srinivasan and I fall in the 30% tax bracket. I recently intended to invest a lumpsum amount (5 lakhs) in a liquid fund with the idea of moving this gradually to equity funds by way of investing monthly installments of Rs. 20000. (approx.) However the new tax rules with respect to liquid funds taxation has left me confused since I now understand that the debt funds will be at par with bank fixed deposits in terms of taxation, if it is held for less than 36 months.
Please advice on the right approach to accomplish this and also advice if this will be tax efficient anymore. Appreciate if anyone could kindly illustrate this with an example in the current taxation scenario for a clearer understanding. Appreciate if there are any other suggestions to do this.