[SmartCat]

Originally Posted by sirius

This shows divergence between wider economy (near 50% of households depend on agriculture and many urban poor and lower middle class suffering with water shortages due to last year El Niño) and economy of wealthy (which is more influenced by interest rates, geopolitics and government policies)

Stock market has nothing to do with rich, middle class or the poor. It is more a reflection of money inflows & outflows into the markets. And this depends on whole lot of factors (one of which is economic health of the nation).

If other factors outweigh poor economic health, the stock market might zoom. Conversely, if the rich/middle class/poor are having a bonanza, stocks can still crash. So when investing in the stock markets, ignore the economy and economists. Instead, look at an individual stock's current valuation & future prospects.

For eg, this is the chart of Karachi stock index:



Exhibit 2, Venezuelan stock index:

[SmartCat]

Originally Posted by adi.mariner

A small query to all the experts here. How relevant is investing in high dividend yielding stocks because the dividend is now taxed which wasn't the case earlier. Asking the query a bit late compared to the change in rules.

Data on dividends - Rs. 2.2 trillion paid out apparently. I don't know how much that is, but seems like a big number



But 0.65 to 2.2 in 5 years means dividends paid out in Rupees has been growing at 27% cagr

[Gupts007]

The market is in a grip of major bulls and is euphoric. Just have a look at this SME IPO and the stats. Then look at their business model and see where does it beg to be chased like it was with the IPO subscription.

https://x.com/abhymurarka/status/180...wXdP3GUnO7F8ig

Having said that, who are we to question the move. Make hay while the sun shines.

[KumarS]

Hello Members,
Reaching out to you to get insight on this TDS from Embassy REIT.

Question: Is this legit? Would I be taxed even if I have no taxable profit or income from other sources?

I bought just two shares of EMBASSY-RR to learn how REITs work, but then I forgot about them. Unfortunately, the share price is currently down 7%.

The shares are held in my brother's Demat account, where I was experimenting with investing last year since he doesn't have any taxable income.

I recently received an email from KFintech with a Form 16A for a Rs 1 TDS deduction in Q4. I'm wondering what triggered this tax deduction.

Found below information on internet:

194LBA : Certain income from units of a business trust

This is from ICICIDirect site which I think is the only one where investor is taxed without considering any tax slab or gain.

https://www.icicidirect.com/fd-and-b...e%20applicable.

Sale of Units
(Short Term Capital Gains – Holding Period < 3 Years)
Gains taxed at 15%



Thanks.

[Altaf Petiwala]

Looking at the current Volatility in the Markets and the speed at which the Markets are moving, I have observed that unless you have an Algo trading your Pre Defined System, its very difficult to stick to rules that you have made, if you are trading Intraday.

If you are trading based on Daily Charts, it gives you the luxury of arriving at your decisions when the Markets are not currently open, making the decision making process less stressful, as you do not have to make a decision in the next 5 minutes

Your thoughts on the above would be appreciated

[rx100]

Originally Posted by KumarS

Hello Members,
Reaching out to you to get insight on this TDS from Embassy REIT.

Question: Is this legit? Would I be taxed even if I have no taxable profit or income from other sources?

I bought just two shares of EMBASSY-RR to learn how REITs work, but then I forgot about them. Unfortunately, the share price is currently down 7%.

The shares are held in my brother's Demat account, where I was experimenting with investing last year since he doesn't have any taxable income.

I recently received an email from KFintech with a Form 16A for a Rs 1 TDS deduction in Q4. I'm wondering what triggered this tax deduction.

Currently there is no TDS applicable on Long term or short term capital gains in equities. It is up to individual to declare it during tax filing. But there is TDS applicable for dividends you received for an year if it is above 5000 at 10%. But I don’t think you have earned that much dividend from 2 units. This could be related to something else in his portfolio like any MF units dividend.

Edit : Looks like for REIT dividends, there is no cap at 5K and all dividends will have a TDS at 10%, so 1 rs TDS is for the dividend 10 rs received. Usually they send out an email with a declaration form about TDS deduction

https://qna.tax/t/taxation-of-reits/5148

[KumarS]

Originally Posted by rx100

Looks like for REIT dividends, there is no cap at 5K and all dividends will have a TDS at 10%, so 1 rs TDS is for the dividend 10 rs received. Usually they send out an email with a declaration form about TDS deduction

https://qna.tax/t/taxation-of-reits/5148

Thanks for the link! It's clear now.

So, a REIT will deduct tax at 10% regardless of the investor's tax bracket. It's then up to the investor to file their ITR and claim any applicable tax benefits.

Still have one doubt, why no tax for previous quarters. I see in history that dividend is paid every quarter in range of RS 10-11 but they have considered only last quarter for TDS.

Also, I have other REITs too which received dividend but they did not send Form16A.

Good investment for learning
Brother will be added to ITR filing population with Rs 10 income

[Gupts007]

Originally Posted by Altaf Petiwala

Looking at the current Volatility in the Markets and the speed at which the Markets are moving, I have observed that unless you have an Algo trading your Pre Defined System, its very difficult to stick to rules that you have made, if you are trading Intraday.

If you are trading based on Daily Charts, it gives you the luxury of arriving at your decisions when the Markets are not currently open, making the decision making process less stressful, as you do not have to make a decision in the next 5 minutes

Your thoughts on the above would be appreciated

Trading intraday in isolation to the longer time frame trend is a mistake almost all the newbies make. Intraday trend should ideally align with the longer time frame trend which is Daily and/or Weekly. Success rate will be higher if you do this. Of course longer the time frame, higher will be the risk and reward.

[cncmachinist]

Hello

I have started my investment journey long back with a HDFC securities account linked to my HDFC bank personal account. My DMAT account is with NSDL. Two years ago I opened second account with Zerodha with DMAT account in CDSL. I find managing Zerodha account is far easier and cheaper than HDFC one.

Questions are
1) How do I transfer all my holding in NSDL to CDSL and close HDFC Securities account?.
2) Has any one done this and can guide me in doing this?
3) Can this be done online?

In both accounts I am the sole holder.

[sunilch]

Originally Posted by cncmachinist

Hello

I have started my investment journey long back with a HDFC securities account linked to my HDFC bank personal account. My DMAT account is with NSDL. Two years ago I opened second account with Zerodha with DMAT account in CDSL. I find managing Zerodha account is far easier and cheaper than HDFC one.

Questions are
1) How do I transfer all my holding in NSDL to CDSL and close HDFC Securities account?.
2) Has any one done this and can guide me in doing this?
3) Can this be done online?

In both accounts I am the sole holder.

I had done this off-line by filling transfer slips. This was long back and hence I am not sure if this is possible online today or not.

Its a simple process though. Ask your broker for transfer slips and they should be able to provide the same.

[subho10]

Originally Posted by cncmachinist

Hello

I have started my investment journey long back with a HDFC securities account linked to my HDFC bank personal account. My DMAT account is with NSDL. Two years ago I opened second account with Zerodha with DMAT account in CDSL. I find managing Zerodha account is far easier and cheaper than HDFC one.

Questions are
1) How do I transfer all my holding in NSDL to CDSL and close HDFC Securities account?.
2) Has any one done this and can guide me in doing this?
3) Can this be done online?

In both accounts I am the sole holder.

It is a offline process. You need to ask for transfer slip from your old broker and submit the filled one to the new broker. The transfer process takes 2-3 days. The downside of this is your purchase value will be recorded as current price.

[NetfreakBombay]

Originally Posted by cncmachinist

1) How do I transfer all my holding in NSDL to CDSL and close HDFC Securities account?.

TLDR : Do not do that.

Long version : Do not do this till you figure out applicable capital gains. It is possible to work with brokers so that gains are not recorded on transfer. If not done properly; you will end up paying 10% as gains tax (on gains).

If total capital gains are less than 1 lakh, then it does not matter. You can easily initiate transfer since no tax is payable.

[SmartCat]

Originally Posted by cncmachinist

I find managing Zerodha account is far easier and cheaper than HDFC one.

Refer to this link:
https://support.zerodha.com/category...-zerodha-demat

Instead, you can just stop using HDFC Securities. For all future share purchases, take the trade using Zerodha. Whenever you want to sell shares to raise funds, exit those that are with HDFC Sec.

Originally Posted by NetfreakBombay

Long version : Do not do this till you figure out applicable capital gains.

Are you sure about this? What you are referring to is only with respect to mutual funds. For eg: when you shift from 'regular' to 'direct' plan or when you shift from one mutual fund to another, within the same fund house.

As far as I understand, transferring shares from one broker to another will not create a tax liability.

[NetfreakBombay]

Originally Posted by SmartCat

As far as I understand, transferring shares from one broker to another will not create a tax liability.

It "should not" create a liability since ownership is not changing.

In practice, this depends on how both brokers report it. If broker 1 ends up reporting it as off market sale.. filing would be a tough thing since there will be a mismatch with 26as.

Not all brokers handle it properly. Better to transfer just a handful and watch in 26as.

[Satkaj]

If both the accounts are part of your income tax return I am sure your CA will capture it properly. You should not worry.