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Mr. Comingle
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To start off, here are a couple of tips from the internet which can help optimize your capital gains taxes on Equities. Basic info first - 

  • Short term gains (if shares are sold within 12 months of purchase) shall be taxed at 15%  
  • Long term gains shall be taxed at 10% only on capital gains exceeding Rs. 1 lakh.
  • ‘Short’ term loss can be adjusted against both short term gains (taxed at 15%) as well as long term gains (taxed at 10%). However, ‘Long’ term loss can be adjusted only against long term gains (taxed at 10%)

 

Tip 1

Book short term loss on shares. Sell the short term shares in loss before 31st March. By doing this, you are actually using that loss to set off against your short term gains and hence save tax at 15%. Doing this will help you set off it against both short term and long term gains. If you are convinced that the stock is a great buy even though in loss, you can buy again after a couple of days. But selling once and booking loss is actually helping you save taxes. If you are late in selling, say if you sell the stock in loss after one year, it will become long term loss. So, better to sell them during the FY.

 

Tip 2

Book long term gains on paper every year. Say you have shares that are making you a long term gain of Rs. 1 lakh, you need not pay tax on this as long term gains are exempt to the tune of Rs. 1 lakh. You can book profits on paper upto Rs. 1 lakh every year and again buy the stock for another long term period.

 

For the above to work, keep in mind -

  1. File the income return on time.
  2. Avoid intraday equities and intraday FnO trading. The losses from these are tagged as ‘Speculation loss’. And this cannot be set offed against the regular short term or long term loss on sale of shares.

Further thoughts and criticisms are welcome.

 

 

Edited by 0verlord
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  • 1 month later...

A cozn has a LIC policy which was forced on him by a relative and he has already paid it for 5 years. He has recently started investing and realized its not a great investment/insurance product. He called me for advice but I am not to sure I told him to check the surrender value and see if it makes sense to surrender. He also said that he can stop paying the future premiums and will get the already paid amount plus some interest at the time of maturity. Anyone has any idea which option is better ? His policy is a Jeevan Anand Policy. He is also scared that if he surrenders then the tax benefit under 80c claimed by him can get reversed. Is this true ? Anyone has any experience ?

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6 hours ago, SuperT said:

A cozn has a LIC policy which was forced on him by a relative and he has already paid it for 5 years. He has recently started investing and realized its not a great investment/insurance product. He called me for advice but I am not to sure I told him to check the surrender value and see if it makes sense to surrender. He also said that he can stop paying the future premiums and will get the already paid amount plus some interest at the time of maturity. Anyone has any idea which option is better ? His policy is a Jeevan Anand Policy. He is also scared that if he surrenders then the tax benefit under 80c claimed by him can get reversed. Is this true ? Anyone has any experience ?

I would suggest hold the policy, through which he can grab the LIC IPO

 

https://economictimes.indiatimes.com/markets/ipos/fpos/up-to-10-of-lic-ipo-issue-size-to-be-reserved-for-policyholders-mos-finance/articleshow/80768975.cms?from=mdr

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19 hours ago, SuperT said:

He is also scared that if he surrenders then the tax benefit under 80c claimed by him can get reversed. Is this true ? Anyone has any experience ?

Yes you have to reverse the 80c if it’s claimed. But if you have any other policy/loan/elss invesment that you had has 80c claimb able you can adjust it . (only if you did not claim it earlier because it went over the threshold)

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16 minutes ago, rushaboswal said:

Yes you have to reverse the 80c if it’s claimed. But if you have any other policy/loan/elss invesment that you had has 80c claimb able you can adjust it . (only if you did not claim it earlier because it went over the threshold)

Thanks man. Will convey the same to him. I guess he is stuck with the policy then. He is upset because he calculated returns and it would turn out to be approx. 6% for the LIC Policy he could have easily invested in ELSS Mutual Funds and easily got better returns. 

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5 hours ago, SuperT said:

Thanks man. Will convey the same to him. I guess he is stuck with the policy then. He is upset because he calculated returns and it would turn out to be approx. 6% for the LIC Policy he could have easily invested in ELSS Mutual Funds and easily got better returns. 

Lic and ulips are scam but 99% will never know.

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14 hours ago, TheGothamChampion said:

I don't know where to ask this question so asking it here. 

 

Does anyone here own a franchise store? I am want to open a franchise store for passive income and didn't find any good answers online.

While I don't own a franchise Store - I did do a lot of research when I thought of taking up a franchise as a side business ( multiple times 2011/2018)

It's not easy to make a decent income from a franchise business unless if it's of a big and established brand which can pull in sales from day 1.

Also most franchises charge a lot upfront in Franchise fees and equipment & machinery you purchase from them .Also apart from rent and salaries and other expenses you also have to pay royalty to the franchise brand. Leaving you with very little income left.  

I wouldn't advise you to open a franchise of any business without doing through research as to whether the proposed business is feasible in your area and whether or not the franchise can actually make projected sales/revenue to be profitable .

Also payback period - time in which you can recover your investment back should be max 2/3 years . Cause only after recovering your initial investment you actually start earning . If for any reason if you have to close the business you would only get 25% of your initial investment back. . Hence if you haven't recovered your money back by that time you will end up losing money . 

 

Franchise India has lots of business you can take up franchises of . Total investments start from as low as 5 lakhs to 2/3 crores ( say for jewellery stores ).

They also organise franchise exhibitions where you can meet lots of franchise owners and talk to them and get an idea of their business and how it can work in your area. 

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1 hour ago, Krazyniks said:

While I don't own a franchise Store - I did do a lot of research when I thought of taking up a franchise as a side business ( multiple times 2011/2018)

It's not easy to make a decent income from a franchise business unless if it's of a big and established brand which can pull in sales from day 1.

Also most franchises charge a lot upfront in Franchise fees and equipment & machinery you purchase from them .Also apart from rent and salaries and other expenses you also have to pay royalty to the franchise brand. Leaving you with very little income left.  

I wouldn't advise you to open a franchise of any business without doing through research as to whether the proposed business is feasible in your area and whether or not the franchise can actually make projected sales/revenue to be profitable .

Also payback period - time in which you can recover your investment back should be max 2/3 years . Cause only after recovering your initial investment you actually start earning . If for any reason if you have to close the business you would only get 25% of your initial investment back. . Hence if you haven't recovered your money back by that time you will end up losing money . 

 

Franchise India has lots of business you can take up franchises of . Total investments start from as low as 5 lakhs to 2/3 crores ( say for jewellery stores ).

They also organise franchise exhibitions where you can meet lots of franchise owners and talk to them and get an idea of their business and how it can work in your area. 

Thanks for the response bro. Will check out Franchise India.

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2 hours ago, Krazyniks said:

Franchise India has lots of business you can take up franchises of . Total investments start from as low as 5 lakhs to 2/3 crores ( say for jewellery stores ).

They also organise franchise exhibitions where you can meet lots of franchise owners and talk to them and get an idea of their business and how it can work in your area. 

didn't know such a thing existed to explore online.  Thanks

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2 hours ago, TheGothamChampion said:

Thanks for the response bro. Will check out Franchise India.

 

1 hour ago, Pacifier said:

didn't know such a thing existed to explore online.  Thanks

Your welcome guys . If you have anymore queries feel free to ask . 

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  • 3 weeks later...

personal finances related -

 

I had a child/dependent bank account  (with Canara Bank) for many years which my grandfather had opened for me, and deposited some money into an FD. 

I could've gotten it changed to a regular savings a/c but we'd totally forgotten this existed. 

 

Went to the bank today and got it done. They'll be sending me a debit card, cheque book etc by post. I use my HDFC savings a/c for UPI and any deposits/withdrawals, don't need to actively use this a/c. Should I get with a different bank? The only benefit here is that Canara Bank branch is 2 mins from my house.

 My dad said its beneficial having one a/c in a nationalised bank. Is this sound logic, or is this another thing people do without any actual logic behind it? 

 

I didn't immediately open up an FD with Canara Bank as I thought I'd ask once for advice. I don't want the money to just sit around doing nothing.

Would like to invest at least 1L, will keep the rest for a trip abroad this year, hopefully.

Any advice, never dabbled with this much money?

 

Dad just told me to put into a Fixed Deposit - but I want to explore my options. 

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3 hours ago, North said:

personal finances related -

 

I had a child/dependent bank account  (with Canara Bank) for many years which my grandfather had opened for me, and deposited some money into an FD. 

I could've gotten it changed to a regular savings a/c but we'd totally forgotten this existed. 

 

Went to the bank today and got it done. They'll be sending me a debit card, cheque book etc by post. I use my HDFC savings a/c for UPI and any deposits/withdrawals, don't need to actively use this a/c. Should I get with a different bank? The only benefit here is that Canara Bank branch is 2 mins from my house.

 My dad said its beneficial having one a/c in a nationalised bank. Is this sound logic, or is this another thing people do without any actual logic behind it? 

 

I didn't immediately open up an FD with Canara Bank as I thought I'd ask once for advice. I don't want the money to just sit around doing nothing.

Would like to invest at least 1L, will keep the rest for a trip abroad this year, hopefully.

Any advice, never dabbled with this much money?

 

Dad just told me to put into a Fixed Deposit - but I want to explore my options. 

If you have a demat account, you can buy high dividend stocks like BPCL, IOCL or Coal India. They yield much higher returns than FD. Also, there is no harm in having a bank account in Nationalised bank. I too have a account in SBI as it is just 200 metres away from my house. Comes handy when I need to deposit cash urgently. 

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5 hours ago, North said:

Dad just told me to put into a Fixed Deposit - but I want to explore my options. 

I don't really think you have to worry about putting all of your eggs in one basket with the current amount you have. 

I would say to just either make an FD in a bank which has the best digital services out of your options (Canara or HDFC) or if you really want to just invest it long term, then put this in a Post Office FD/NSC (much better interest rates).

Other than that you can go with Index funds.

 

Having an acc. in a nationalised bank is not bad but not fool proof. So if you really want safety and returns, go with Post Office, other wise you really can't go wrong with banks like HDFC unless if you have crores of capital.

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