I have invested my emergency fund of ₹1 lakh in UTI Liquid Cash Fund - Direct Plan. What will be the tax liability if this amount remains invested for more than one year or more than three years? I am in the income tax bracket of 20 per cent.
- Atul Sachan
If you sell your investment before three years, you will have to pay short-term capital gains tax. Short-term capital gains are added to your income and taxed as per the the income tax slab applicable to you. If investments are held for more than three years, your gains will qualify for long-term capital gains tax of 20 per cent with indexation benefit.
This article was originally published on November 10, 2015.
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