What is a liquid fund and what are the tax implications?
Don't understand what is a liquid fund? Want to know the tax imposed on the interest from it? Let our finance experts explain the various aspects of a liquid fund, including the tax implications.
Since my knowledge is very limited, I wish to clarify what exactly is a liquid fund. One broker says that I could park funds in it, as we do in ordinary savings bank accounts. What will be the implications for tax? Will the interest be taxed as well?