Hello!
I have been regularly investing in Birla Sunlife Frontline Equity Fund (Direct) via SIP for the since June 2013 and have made sizeable gains thanks to the market rally. Now i would like to switch all the long term gains to a liquid fund to rebalance. I have a doubt regarding tax liability on the portion i want to switchover i.e.
The total amount i want to switch is about 25K with about 11K in long term capital gains. My question is if i switch over the entire 25K (principal + LTCG) would the principal 14K be treated tax free or would it count as Short Term Capital Gains.
Thanks in advance
Rahul Chatterjee