INVEST IN STOCK MARKET : TAX TREATMENT ON INVESTMENT !

INVESTMENT IN STOCKS !
INVEST IN STOCK MARKET :  TAX TREATMENT ON INVESTMENT  !
INVEST IN STOCK MARKET :  TAX TREATMENT ON INVESTMENT  ! 

Table of Contents

*  Pre requisites
*  Remember
 * Tax treatment on Investment in the stock market .
  • In financial markets, a stock is a unit used as a mutual fund, private partnership and a real estate investment trust. The owner of the shares in the company is a shareholder (or stockholder) of the corporation.                                                                                                                                                                                                                                                                A share is an integral entity of capital, which expresses ownership relation between the company and the shareholder.                                                                                                                                                                                                                                                                  The value of a share is its value, and the face value of the issued shares, together, expresses the capital of a company, which does not reflect the market value of those shares.                                                                                                                                                                                                                                                                                            The simple meaning is that the share capital on the company's Balance Sheet is not entirely accurate and the market value is different.
Income from ownership of shares is a dividend. The process of buying and selling shares often involves going through a stockbroker as a middleman.                                                                                                                                                                                                                                            There are different types of stocks such as equity shares, preference shares, bonus shares, employee stock option plans and also many types of equity shares.
Getting started with investing in the stock market is really easy.
PRE REQUISITES:
There are some prerequisites for investing in the Indian stock market. Here are some things that you will first need to invest in the stock market:
  • saving account
  • Trading and Demat Account: In order to open it, you will have to go to a broker, today many brokers offer online facility.
In order to open a demat account, the following documents are required:

-Pan Card
-Bad Card (for proof of address)
- Passport size photo
- canceled check
Your savings account can be in any private / public Indian bank.                                                                   
After opening a demat account, investing in the stock market can be done through internet connection in computer / laptop / mobile.                                                                                                                     
To know about how to earn a stock market, one has to understand that when it wants to buy or sell shares in the stock market, then how does it work, then it has to be ordered through online trading system first.                                                                                                                                                 
When you invest in the stock market, there is no guarantee, and your money can go down in value.

We can not tell if investment is right for you, but if you are going to do this, then it is recommended that you invest for a minimum of five years.

 This is because as long as you invest, the longer you have to ride any shocks on the way.                                                                                                             
Read books:
Books provide a wealth of information and are affordable compared to the cost of classrooms, seminars and educational DVDs sold on the web.
                                                               
Study the great ones :
 Learning about the biggest investors of the past years, will give attitude, inspiration and appreciation to the game, which is the stock market. Great people include Warren Buffett, Jesse Livermore, George Soros, Benjamin Graham, Peter Lynch, John Templeton and Paul Tudor Jones.                                                                                                                                                         
The sooner you start investing better, as soon as possible you allow your investment to grow further, where the concept of compounding increases your income, the principal and the interest or dividends earned on it, year-to-year deposits By doing
REMEMBER:
  1. Invest early
  2. Invest regularly
  3. Invest long term and not for a short term
TAX TREATMENT ON INVESTMENT IN THE STOCK MARKET :

Tax treatment of dividends varies between areas. For example, in India, share dividends are tax free in the hands of a shareholder of up to Rs 10 lakh, but the dividend payment company has to pay dividend distribution at 12.5%.

There is also the concept of a deemed dividend, which is not tax-free. In addition, in the Indian tax laws, the short-term capital gains appear on the shares after taking profits in less than a year and more than the long term capital gains.

The short term capital gains are at 15%, while the long term capital gains, which are from year 2018, are at 10% rate.

thanks for the time . 

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