Redemption from which of the following mutual fund schemes would attract Securities Transaction Tax (STT) for an investor?
A
Multi-cap mutual fund
B
Government Securities Fund
C
Liquid Fund
D
Overnight Fund
Correct Option:
A
Explanation
Securities Transaction Tax (STT) is applicable on the redemption of units of equity-oriented mutual fund schemes, such as multi-cap funds. It is not levied on the redemption of debt-oriented schemes such as government securities funds, liquid funds, or overnight funds.
