Tax for All Weather Investing and other ETF smallcases:

The All Weather Investing smallcase will be taxed differently for each of the ETFs that are part of it:

  • Equity ETFs (NIFTYBEES, JUNIORBEES) will be taxed like other equity instruments - 15% tax on short-term gains (holding period less than 1 year), 10% tax on long-term gains over Rs 1 lakh (holding period more than 1 year)

  • Debt ETF (LiquidBEES) does not attract any tax liability, as it only issues dividends (which are already taxed at source)

  • Gold ETFs are also taxed as per debt funds or bond ETF (short-term gains added to income (holding period less than 3 years) and long-term gains taxed at 20% after indexation (holding period more than 3 years)

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