Gifting/Transferring Assets to your Relatives to Save Tax? Know all about Clubbing Provisions

Gifting/Transferring Assets to your Relatives to Save Tax? Know all about Clubbing Provisions

It’s really not uncommon for us to see people diverting their income or assets to their spouse or relative in the hope of reducing taxation. But guess what? Tax laws already have measures in place to prevent people from avoiding taxation through such means. In fact, people unaware of such provisions are laying the groundwork for tax blunders that would put them in a position to pay huge taxes in the future. The clubbing provisions in the Income Tax Act deal with cases where a person can also be taxed for the income earned by somebody else. What is Clubbing …

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How are gifted shares & ETFs taxed?

How are gifted shares & ETFs taxed?

With the advent of new technology like e-DIS, online off-market transfer of securities has become seamless, paving the way for gifting shares and ETFs effortlessly. Brokers have leveraged this extensively by providing the facility of gifting shares and ETFs on their platforms. They have become the new go-to for birthdays, anniversaries, weddings and more– no end to gifts, is there? Shares and ETFs also make the best gifts. After all, they have the potential to grow and even become the next big thing in the future. Often, a person oblivious to financial markets–upon receiving something as peculiar as shares or …

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Basic things everyone should know about PPF

Basic things everyone should know about PPF

In this week’s blog, we will be discussing one of the most eminent investing avenues in India– the Public Provident Fund. This government scheme has been around for a very long time, and with its enormous tax benefits and assured returns, it has stood the test of time. What is PPF? The Public Provident Fund (PPF) is a small savings scheme offered by the central government. PPF came into force on 1st July 1968. The account is backed by the government of India and is entirely risk-free with guaranteed returns. Additionally, any amount in your PPF account cannot be attached under …

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Beginners? ETF is made for you!

Beginners? ETF is made for you!

New investors setting foot in the equity markets are more likely to find themselves overwhelmed and perplexed. The market can be such a place, especially for beginners. The equity market isn’t a serene or simple place in any sense. A lot goes on & affects the markets daily—a lot!! An enormous amount of data and news is churned and thrown around daily. Amid this, investors can find themselves questioning – Where to begin? How to keep track? What to look for?  Equity investments are the best way to generate wealth and beat inflation. With the right investment mindset and risk management,any investor can succeed. A great starting place for …

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ইটিএফ – নতুন বিনিয়োগকারীদের জন্য

ইটিএফ - নতুন বিনিয়োগকারীদের জন্য

ইক্যুইটি  হলো বিনিয়োগের মাধ্যমে সম্পদ তৈরি করার এবং মুদ্রাস্ফীতিকে হারানোর সবচেয়ে ভালো উপায়।  কিন্তু ইক্যুইটি  বাজার ,নতুন বিনিয়োগকারীদের মনে  উদ্বেগ এবং বিভ্রান্তি তৈরি করতে পারে। বাজার তাদের জন্য  কোনো অর্থেই সহজ জায়গা নয়। প্রতিদিন অনেক ঘটনা ঘটে এবং বাজারের ওপর প্রভাব ফেলে। প্রচুর তথ্য ও খবর প্রতিদিন আপনাকে প্রভাবিত করে। তাহলে এখন  প্রশ্ন – কোথা থেকে শুরু করবেন ? কিভাবে পর্যবেক্ষণ করবেন? বিনিয়োগের চাবিকাঠি হলো  – সঠিকভাবে বিনিযোগকরার  মানষিকতা এবং ঝুঁকি নেওয়ার ক্ষমতা । বিনিয়োগকারী হিসাবে আপনার একটা দুর্দান্ত শুরুর জায়গা হতে পারে ইটিএফ  (এক্সচেঞ্জ ট্রেডেড ফান্ড) . ইটিএফ  (এক্সচেঞ্জ ট্রেডেড ফান্ড)  কী ? ইটিএফ  হলো বিনিয়োগকারীদের অর্থের একটি তহবিল …

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SIP It, Shut It But Don’t Forget It

SIP It, Shut It But Don’t Forget It

SIP or Systematic Investment Plan is a method of regular investment for wealth creation over a long period of time. Unlike investing all your investible funds in one go, SIP is a process of investing small bits of money regularly for a long period of time so as to reap the benefits of both compounding as well as rupee cost averaging. Hence, SIP is increasingly becoming popular to small and big investors as well.  SIP Advantages 1. SIP is a process or method of investing, similar to recurring deposits in a bank. It is no asset class in itself 2. …

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শেয়ার হারিয়ে গেলে কি করবেন !!

শেয়ার হারিয়ে গেলে কি করবেন !!

একজন মানুষ কষ্টার্জিত অর্থ যখন বিনিয়োগ করবার কথা ভাবেন তখন তার ভালো মন্দ সব দিকটাই বিচার করা প্রয়োজন। অনেকেই ব্যাঙ্কে টাকা রাখার সঙ্গে বিভিন্ন কোম্পানির শেয়ার কিনে রাখেন। পুরনো দিনে ডিপোজিটরি ছিল না। অনেকের বাড়িতে বহু বছর আগে কেনা কাগজে ছাপা শেয়ার এখনও পাওয়া যায়। শেয়ার-এর আলাদা করে কোনো পাসবুক হয় না। আগেকার দিনের শেয়ারে শুধু থাকে একটি শংসা পত্র যাকে আমরা ইংরেজিতে সার্টিফিকেট বলে থাকি। কোনো কারণে সেটি হারিয়ে গেলে কি কি করণীয় তা জেনে রাখা খুব জরুরি।  বাড়ি বদলের সময়, কোনো কারণে ব্যস্ততায় পাবলিক ট্রান্সপোর্টে যদি আপনার কোনো ব্যাগে রাখা শেয়ার সার্টিফিকেট হারিয়ে যায় তাহলে প্রথমেই আপনাকে স্থানীয় …

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Should I pay or save tax?

How to save your Income tax Upto 12 lacs (Sec - 87A, Sec 80CCD(1B))

Should I pay or should I save taxes? If that is your dilemma, then you can take solace from the fact that even Benjamin Franklin, the founding father of the United States of America, faced the same tough choice way back in 1789 when in a letter he wrote to Jean-Baptiste Leroy about the new constitution of his country, ‘…nothing is certain except death and taxes.’  Income taxes are unavoidable. But the question is: should one pay it or invest in specified instruments to save one’s tax outgo? Under the law of the land, you need to pay tax to …

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You need to pay tax on dividend

You need to pay tax on dividend in 2023: All you need to know

You need to pay tax on dividend, 15 March deadline for advance tax payment. Dividend payment is no longer tax-free in your hand from 1 April 2020. If you have dividend income from shares, equity or debt mutual funds, you’ll have to add this as ‘income from other sources’ to arrive at your total income and pay income tax accordingly.  Till March 2020 dividend in your hands tax-free as the dividend paying company or mutual fund house was required to pay a dividend distribution tax (DDT). The Finance Act 2020 has withdrawn the DDT liability on firms and mutual funds …

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Why should you invest in shares/mutual funds – part-3

Why should you invest in shares/mutual funds in 2021 -- part-3

ETFs – a simple and low-risk way to invest in shares. Investment in equities doesn’t always entail a thorough research of balance sheets, management pedigree, etc of companies. Thanks to the advent of exchange-traded funds (ETFs), those are now things of the past. Passive investment through ETFs is increasingly becoming a darling to seasoned as well as first-time investors in equity markets around the world. Consider this bit of information to get an idea about how popular are ETFs – 60% of daily trading volume in the US stock market, which is 8 times bigger than India, are ETFs. In …

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