Debt funds including Fixed Maturity Plans ( FMPs ) and liquid funds when sold after 365 days from the date of purchase; then any capital gains/loss made on it would be treated as Long-Term in nature and the investor would be liable to pay Long-term Capital Gains Tax at the time of the redemption of units. For Long-term investment in Liquid fund we can clearly see that the investors in the growth option would be better-off than the Dividend option. Tax calculation for Long term capital gains for both dividend as well as growth options are as follows:
Simple! Sensible!!
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