What is the tax treatment for the investments in Index ETFs like the QIF?
The same rules apply as in the case of buying & selling stocks / mutual fund units of Equity scheme. Parameter Time frame of holding Applicable Tax Rate Short Term Capital Gains Tax Applicable before 1 year 15% Long Term Capital Gains Tax Applicable for holding of 1 year and above Nil Securities Transaction Tax (STT) is applicable at the time of sale and purchase of units on the exchange @ 0.125%. In the case of a squared trade, the STT payable by the investor is @ 0.025%. In case of subscription of units directly with the Fund, no Securities Transaction Tax is payable whereas at the time of redemption, the STT payable by the investor is @ 0.25% .