So net net imposing taxes on capital gains from equity investing is taxation at multiple levels for investors; on tax paid profit generation which is what drives the markets.
This article explains how bond funds can be used to optimise post tax returns on fixed income portfolios.
Income tax laws mandate a minimum holding period, before an owner sells his/her residential house, to avail of tax benefits. Let us analyse the various provisions, under the Income Tax Act, to understand the R
Instead of cutting MF advisors hands by levying more taxes, support them by helping them reach the common man.
Long term investments means the gains are long term in nature and do not attract tax. This means you not only save on taxes but also get to ride short term volatility in the equity markets.
Currently FIIs enjoy an exemption from withholding tax on short term capital gains. So, the tax that they pay is not as TDS but it is as an advance tax. The same treatment is going to be extended to QFIs which will now not have to pay TDS, but can pay the advance tax.
In the upcoming Budget the Finance Minister P Chidambaram may rationalize the withholding tax on debt instruments.
With complex capital gains tax structure, it's wise to first make yourself aware on the net returns i.e. post tax returns you will earn, whenever you intend to make any investment. This article shows how long term and short term capital gains are derived and how it can help in reducing your taxability.
For most investors, portfolio diversification is one that includes securities or mf across asset classes however International Equity Funds are often overlooked. Analyzing the performance, Crisil Research recommends these funds to investors to enhance returns, diversification, risk reduction.
Short term Capital gains, if the assets like shares and securities, are held by the assessee for a period not exceeding 12 months or 36 months in the case of other assets.