In case of short term gains from liquid funds do my father need to pay tax

I am extremely grateful to you for your time and guidance, which cannot be more simple and lucid for a layman like me! If I may be permitted to take up a few more minutes of your time, I have just one question emanating from your mail - a) You have suggested putting a sum in Liquid Funds for 12 months and withdraw it equal monthly in one go. How about tax impact on such withdrawal. The Liquid Funds are categorised as Debt Funds or Non-Equity Funds and any withdrawal before 36 months of holding will attract STCG tax. I shall appreciate your guidance on this (For your ready reference, I recap - a) my father is a Super Senior Citizen (SSC) b) His present annual income from bank FDs is approx Rs.3,20,000 and c) Present tax exemption for a SSC is Rs. 5, 00,000. I thank you in advance once again for your time and guidance?

Jun 1, 2017 by R Kumar, | Mutual Fund

We are aware about the short term taxation of debt / liquid funds. Please note that in this case, the short term capital gain will be added to your father’s income and taxed according to his tax slab. But, we will still suggest it because his overall income level is below the taxable income slab and therefore, even though there is a short term capital gains, he need not pay any taxes.

However, just for you academic interest, you may like to check this tool so as to understand how tax is calculated if you do SWP from liquid/ debt funds https://www.advisorkhoj.com/mutual-funds...

Hope I could answer your doubt completely.

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