Personal Finance

TAXATION ON DERIVATE TRANSACTIONS.

Tax Planning & Help

Posted by : dilipshree_sakh

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The definition of “Speculative Transaction” in Section 43(5) of Income Tax Act, 1961 has been amended by Finance Act, 2005 with effect from AY 2006-2007 to exclude transaction in derivates from the purview of speculative transaction.
Income from Derivates Transaction will be treated as Business Income and taxed at normal rates as applicable to Individual / HUF. An Individual / HUF should file Return of income in Form ITR-4 if he does derivate transaction along with any other sources of Income.
Further its pertinent to mention that an individual / HUF may be liable to Tax Audit U/s 44AB of Income Tax Act, 1961 if “Assessee carry’s on business where Total Sales / Turnover / Gross Receipts exceeds Rs.40 Lakhs. Therefore if the transaction under derivates transaction exceeds Rs.40 Lakhs then Tax Audit provisions will be applicable.
The above view is given only in respect to Individual / HUF.
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Retirement planning from 30

Retirement

Posted by : pcspune

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DONT INVEST in any Pension Plans.

Invest in 2-3 Good Equity Funds/Balance Funds by monthly SIP ( on different Dates) for 15 years.

After Retirement, apply for Systematic Withdrawl Plan to recieve Fixed amount Every month on Pre-determined Date.

To get good Income after Retirement try to Increase SIP amount every year.

Birla Sunlife Frontline Equity Fund/
Birla Sunlife - 95 Fund.

HDFC Equity Fund/HDFC Prudence Fund

Reliance Regular Saving Fund Equity/ Balance Option.

P.C.Sharma...

In reply to:

Retirement planning from 30

Posted by : vatsa_rj

Hi
Iam currently 30yrs old and would like to retire in another 15yrs.I want to make an investment for my retirement so that I can get monthly income 15yrs hence forth.This income is required to just cover my monthly expenses and considering that i have own house and no debts.
Please let me know whats the best option available.

Thanks
Srivatsa

mutual funds

MF Investment Help

Posted by : pcspune

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Performance of Birla Frontline Equity is GOOD

Birla Midcap is OK but IDFC Premier Equity/ Small & Midcap Equity Fund is Better Option.

Performance of HSBC Equity Fund is not Consistant.Switch to HDFC Top 200 Fund.

Franklin PRIMA PLUS is OK.But DSPBR Equity
is Better option.

Bencmark VIP is Excellent Choice.

P.C.Sharma...

In reply to:

mutual funds

Posted by : seemasamir

i have been inesting in birlasunlife - frontline(g), midcap(g), hsbc equity g-2000/- pm , franklin prima plus rs1000/-pm and benchmark vip rs.2500/ pm. is my choice correct ?

Regular Income / Dividend

MF Investment Help

Posted by : pcspune

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If you want better returns ,you can not get from safe Options.

If you are willing to take calculated RISK, in short Term(Negligible Risk in long Term)you may opt for Following Options.

Invest money in HDFC High Interest Fund Short Term Plan

Apply for STP(Systematic Transfer Plan) from this Fund to HDFC PRUDENCE Fund (Balance Fund)so that full money is Transferred in this Fund in 1 year or 2 years.

Apply for SWP ( Systematic Withdrawl Plan)
after STP is Completed, to recieve FIXED Amount per month on Pre-determined date.
Apply for Approx. 1% of Invested amount per month as SWP.

P.C.Sharma



...

In reply to:

Regular Income / Dividend

Posted by : Guest

I will like to invest money in some safe instrument (not bank fixed deposit) to generate a regular income on monthly basis.

What is the best option. Although there are POMIS, MIP (dividend not guaranteed) etc., yet will like to know better options. Are there any debt / equity funds which declare regular dividend. I have noticed Bharti AXA Equity has declared total 40% dividend in last few months.

Suggest.

Retirement planning from 30

Retirement

Posted by : vatsa_rj

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Hi
Iam currently 30yrs old and would like to retire in another 15yrs.I want to make an investment for my retirement so that I can get monthly income 15yrs hence forth.This income is required to just cover my monthly expenses and considering that i have own house and no debts.
Please let me know whats the best option available.

Thanks
Srivatsa...

Capital Gains tax on transferred shares.

Tax Planning & Help

Posted by : naik.chandru

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I want to transfer my stocks to my wifes account. I have been holding thos shares for more than a year now. will she be subjected to capital gain tax if sold in a month or so?

C M Naik...

Regular Income / Dividend

MF Investment Help

Posted by : Guest

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I will like to invest money in some safe instrument (not bank fixed deposit) to generate a regular income on monthly basis.

What is the best option. Although there are POMIS, MIP (dividend not guaranteed) etc., yet will like to know better options. Are there any debt / equity funds which declare regular dividend. I have noticed Bharti AXA Equity has declared total 40% dividend in last few months.

Suggest....

short term investment in MF

MF Investment Help

Posted by : m_i_khilji

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If the amount is big, then its ok to park the same in some liquid / plus fund like HDFC HI Short Term. But, though there is no exit load, yet there will be STCG on gains, and for such short period, I don`t think it makes sense.

regards,
MIK...

In reply to:

short term investment in MF

Posted by : hsm

I would like to invest for short term say 7 days or so in MF so that my capital does nit lie idle? What would be the best fund to invest in?

mutual funds

MF Investment Help

Posted by : seemasamir

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i have been inesting in birlasunlife - frontline(g), midcap(g), hsbc equity g-2000/- pm , franklin prima plus rs1000/-pm and benchmark vip rs.2500/ pm. is my choice correct ?...

Best MF for Lumpsum investments

Best Funds to Buy

Posted by : kentmss

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Hi,
Just because you are ready to take high risks does not mean that you go and invest in any fund.
I would advise you to invest your amount in a Debt Fund and go for a STP with a weekly STP.

You could consider
Reliance Regular Savings Fund - equity
Birla Sunlife equity Fund
Mirae Asset India Opportunities Fund

Regards,
Srikanth...

In reply to:

Best MF for Lumpsum investments

Posted by : yrockonu

I want to invest 60k in 5-6 MF. plz suggest me the best funds. I am ready to take high risks.i am first time invester in MF

Sectorial Funds

Other MF Topics

Posted by : m_i_khilji

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Article from ET:

A few days back, I had a fascinating conversation with the CEO of a major fund company. He lamented that fund companies` practice of launching
MF
ever-specialised thematic and sectoral funds routinely turns around and bites them when the markets turn against that sector or theme. Here`s what happens, according to my friend. When the markets are behaving in a certain way, fund companies succumb to marketing pressures to design funds according to what will appeal to investors at the moment. This could be a sector like (once upon a time) technology, or it could be a broader theme like infrastructure, or it could be a size limit like mid-cap companies or whatever.

It`s important for the knowledgeable investor to understand that regardless of what the hype says, these distinctions are almost always created because of marketing needs. It is an unfortunate fact that financial products are bought and sold with the same mindset as consumer products, and products need to be differentiated from competing products in order to sell them.

However, the problem starts when the market turns against the theme. According to the CEO who spoke to me, investment managers get completely trapped in the fund`s original marketing-driven limitations. There comes a point when they know the fund is going to do badly compared to the general market but there`s nothing that can be done. The fund just sits around losing money; the more active investors keep redeeming their funds and the less active ones get set up for a shock when they eventually see what has become of their money. Either way, investors lose money, and the fund company loses its customers and its reputation.

Now, it`s up to the fund companies to have the courage to solve the problem at their end but for the thinking and knowledgeable investor who is reading this publication, the solution is straightforward: Never, ever invest in anything but a completely diversified fund. As the market twists and turns, your fund manager must have the freedom to move to invest in any sector, theme or size of company.

When you invest in a mutual fund, you are paying a fund manager to make investment decisions for you. It`s his or her job to figure what type of investment is best at the moment. Whether it is infrastructure, FMCG or technology, which is the right area to invest in, that`s part of the service that you are supposed to get when you invest in a mutual fund. However, when you get tempted by a fund that is supposed to limit itself to a particular subset of the market, then you are pre-empting the fund manager and making an investment choice yourself.

Inevitably, the time period over which a narrow theme does well is a subset of the time period over which the entire market does well. This may not appear to be the case over a short timeframe but in the long run it is always true. The way marketing works, and the way human beings get attracted to some things and not to others is not going to change.

And that means that not only are financial products (not just funds) going to be sold in the same feature-driven way that cars and shampoos and music players are sold, but a good majority of investors are going to choose them in the same way. However, once you understand what`s happening, it doesn`t make sense not to change the way you make your choices.

Having said that, I myself have few sectorial funds and planned to quit / switch them to diversified ones.

regards,
MIK...

Invest 25000/- in Mutual Fund Tax Saver

MF Investment Help

Posted by : RANJAN

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Sundaram BNP Paribas Tax Saver - Dividend Pay out option ...

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Invest 25000/- in Mutual Fund Tax Saver

Posted by : Guest

Hi,
I want to invest 25000/- in Mutual Fund Tax Saver. Can you tell me whcich fund I have to choose for investing ?

Best MF for Lumpsum investments

Best Funds to Buy

Posted by : RANJAN

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HDFC TOP 200 - Rs 2000

HDFC PRUDENCE - Rs 1000

Birla Sunlife Frontline - Rs 2000

DSPBR Equity - Rs 1000

Reliance Growth - Rs 1000 ...

In reply to:

Best MF for Lumpsum investments

Posted by : arinshare

Dear All,

I wish to rejig my portfolio as my current portfolio owns 9 (nine) funds and I like to reduce it to maximum 5 (Five) and continue SIP for next 10-12 years. My desired portfolio should have the following funds. There is one seen bug - major part will be invested in one AMC – HDFC.

HDFC Equity - Rs.2000.00
HDFC TOP 200 - Rs.2000.00
HDFC Prudence - Rs.1000.00
Reliance Regular - Rs.1000.00
DSPBR Equity - Rs.1000.00

If you find any inconsistency, please let me know.

Wrong units switched

MF & Taxes

Posted by : m_i_khilji

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Dear Members,

I invested in HDFC Growth(G).
Out of total units, I switched 30.088 units to HDFC Prudence and Top 200 last month.

I calculated the units bought and come out with 198.202 units completed 1 year from the remaining units.
I redeemed 198.202 units yesterday. But, I was amazed to see that rather than those units which completed 1 year, units bought in Jan/Feb-2009 were redeemed, due to which there was TDS done of 318 Rs.

Please suggest.

regards,
MIK...

Opportunity to own a Café store in India

Retirement

Posted by : rejithomas2000

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Café business is at a nascent stage in India. It is set to explode with new players emerging and creating space for themselves. Tecknopak Advisors, a global retail consultancy firm, pegs the organized coffee retail business in India at over INR 8 billion with the potential space for nearly 3,000 more coffee retail outlets in India. Existing large players as well as new ones will have more than enough opportunity to participate in this sector provided they time it right. India is one of the fastest emerging markets in the world and with business sentiments getting better by-the-day in the country; a great opportunity is unfolding here – in the form of cafés.

With growing disposable income and better living standards, many are finding these cafes as an ideal place to meet and spend quality time. Thus owning a café business is exciting and is profitable – provided it is done well.

Most of the larger players operating in the Indian café market prefer a COCO (Company Owned Company Operated) model thus sometimes denying many budding entrepreneurs an opportunity to participate in this great Indian growth story.

JenJon Retail & Services Private Limited is the Master Franchisor of BREWBERRYS, a young café chain in the country that has presence in many cities across the country and is now looking at explosive growth of over 200% YoY. It is also one of the very few cafés chains in the county that offers franchise to individuals. The Brewberrys franchise model is designed with a great sense of understanding of the local market and trends. We have a team of internationally trained coffee professionals to establish and develop the business successfully. By becoming a franchisee, one can benefit from a comprehensive support program that includes:

• Location analysis and feasibility report
• Professional training of staff
• Sales and marketing strategy
• Café designing and interiors
• Logistics
• Centralised software

We are looking for investors who are in possession (or can arrange) 600-1200 sq.ft. of commercial space in high foot-fall areas and are ready to invest about INR 1-1.5 million in franchise ownership. Prior business experience of the investor is not necessary as comprehensive training will be provided. The industry also provides professionals and entrepreneurs an excellent growth market to enter. Now is the time to jump in.

This is also an excellent opportunity for professionals wanting to own their own business, with low risk and good returns.

Please feel free to write into brew-berrys(at)in(dot)com for more details.
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