Short term capital gains on liquid/mutual fund

I would like to draw your attention towards section 111A of Income Tax Act, 1961. Section 111A covers Short Term Capital Gains arising from (i) sale of equity shares listed in a recognised stock exchange, which is chargeable to STT, (ii) sale of units of equity oriented mutual fund sold through a recognised stock exchange which is chargeable to STT, (iii) sale of units of a business trust and (iv) sale of equity shares, units of equity oriented mutual fund or units of a business trust through are cognised stock exchange located in any International Financial Services Centre and consideration is paid or payable in foreign currency even if transaction of sale is not chargeable to securities transaction tax (STT). Short Term Capital Gains covered under Section 111A is charged to tax @ 15% (plus surcharge and cess as applicable).

Since you are holding Liquid Fund the same is not covered under Section 111A you are covered under Normal Short Term Capital Gain which is is charged to tax at normal rate of tax which is determined on the basis of the total taxable income of the taxpayer. Hence in both cases you will be charged at Normal Slab rate of tax which is '0' in Scenario 1 and 10% in Scenerio 2

I am agree with Mr.Amitkumar

The other thing I want to write is advance tax is applicable if your expected tax liablity woulld become more than Rs.10,000.So if your tax liability is less than Rs.10,000 than no advance tax would be payable.