STCG tax on gain through STP from liquid to equity fund?

POSTED BY nsabhyankar ON January 21, 2014 11:46 am COMMENTS (4)


I have set up an STP from Quantum liquid fund to QLTE fund. I recently downloaded the capital gains statement from their website. It shows a short term gain of about Rs. 400 from the redemption of units in the liquid fund. The redemption proceeds were used to buy units in the QLTE fund.

Do I need to show this gain in the IT return and pay tax? How is the tax computed?

Is there any legal way to find an exemption?


4 replies on this article “STCG tax on gain through STP from liquid to equity fund?”

  1. ashalanshu says:

    Dear Nsabhyankar, I said STCL. It may be from stocks, MFs, Gold, real estate, any capital asset.



  2. nsabhyankar says:

    The STCL would have to be from stocks, right? Any other way it is possible?

  3. ashalanshu says:

    Dear Nsabhyankar, the STCG earned by you on your liquid fund is taxable as per your salb rate. To save it you need to book some STCL to set it off. I.e. there should be STCL of 400 Rs.



  4. Sibin says:

    Yes, you have to show it. ITR-2 form has option to declare the capital gain details

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