समृद्धि की पाठशाला

    What is Contra Fund   A contra fund is distinguished from other funds by its style of investing. A contra fund takes a contrarian view of an asset, when it either witnesses exuberant demand from investors or is shunned by them at a particular point in time due to short-t erm triggers. The asset’s poor performance or outperformance leads to distortion in valuations, which is what a contra fund seeks to capitalise on. The underlying assumption is that the asset will stabilise and come to its real value in the long term once the short-term concerns plaguing it either become irrelevant or are mitigated. The idea is to buy assets at a cost lower than its fundamental value in the long term. Investors must take note of the fact that contra funds may not perform in the short term because of the kind of assets they invest in. The contra fund may pick up stocks that are out of favour or invest in sectors that are witnessing a slump. A fund that seeks to capitalise on a comm...

How to get Confirm IPO Allotment   So you missed IPO of Tatva Chintan, Zomato etc. These days there is IPO boom and listing gains in most IPO is huge , naturally there is heavy rush to subscribe new IPO, due to this frenzy rush most IPO are many fold oversubscribed. Recent  IPO performance  has shown quite promising results during the listing gains in which some IPOs have provided with listing gains of as high as 102%. (Example Tatva Chintan )  However most investors are not so lucky to get allotment. Here are some tips to get more chances of allotment.   There are any upcoming IPOs in the line in which you can apply this strategy  and increase your chances to get confirmed allotment. Some of very good forthcoming IPO are Devyani International, Krsnna Diagnostic, Windlas, Jana Small Bank, Sri Ram Properties, Adani Wilmar, Paytm,  Rushi Soya, Go First , Star health Insurance etc.   How to get Confirm IPO Allotment? Some basi...

  How to calculate Long Term Capital Gains (LTCG) and Tax Treatment   Long Term Capital Gains (LTCG)   arise out of sale proceed of capital assets held over “long period of time”. For Listed Equity and Equity Oriented MF “long period of time” means more than12 months For all other assets like unlisted shares , Land , Flat, residential houses , real estate , Gold etc “long period of time” means more than 24 months. It is important to calculate LTCG first correctly before Tax effect can be assessed. LTCG is calculated by a key element called “indexation” Formula is   (cost of purchase *indexation Value in the year of sale)/Indexation value in the year of purchase Indexation value is declared by GOI from time to time. Example I purchased a flat for Rs. 10L by paying Rs. 1 lakh to broker in   April 2005 and sold    the same in june 2010 by for Rs. 16 lakh by paying 1 lakh to broker . What is my Long Term Capital Gains?? Do not think...

  Adjust your Capital Gains against Basic exemption to reduce  your Tax Liability   Two types of capital gains are there : 1. Short Term Capital Gains (STCG) 2. Long Term Capital Gains (LTCG)   1. Short Term Capital Gains :                a.) Gains arising out of sale of Equity Oriented MF or Shares held for less than 12 months.                b.) Gains arising out of sale of any other capital assets held for less than 24 months ( in some assets 36 months)   2. Long Term Capital Gains :             a.) Gains arising out of sale of Equity Oriented MF or Shares held for more than 12 months b.) Gains arising out of sale of any other capital assets held for more than 24 months ( in some assets 36 months)   Tax Treatment:   1. STCG Tax Treatment   a. Special STCG - covered U/S 111(A) : ...

  Is it beneficial to sale shares on listing date to reap listing gains ??   Not always …take this real life example   You applied for and were allotted (on July 15 2021) , 13 lots of shares of Clean Science Technology  Each lot contains 16 shares and price band of Rs. 900 per share.   So your total shares are 16 x 13 = 208 shares and Total Investment is Rs. 900 x 208 = Rs. 187200   Now on Listing day  (July 19) share price was listed @ Rs. 1785 per share and you sold all shares on listing day . so your sale Value is Rs. 1785 x 208 shares = Rs. 371280   Your Gain = Rs. 371280-187200= Rs. 184080   Since you held the shares for less than 12 months , such gains will be treated as Short Term Gains (STCG) and will be Taxed @15% +4% cess ,  so total tax = Rs. 28716 and your net gain = Rs. 184080-28716=Rs. 155363   Gain per share = Rs. 155363/208 =Rs. 747   Now suppose you will sell  the shares o...

  Capital gain tax on sale of Zomato IPO shares or any  IPO allotment:   Do you bid for IPO allotment and   after allottment do you sale shares on listing day ( or subsequent days) to reap listing gain ?? Such profit or gain reaped on listing day (or any day sold before 12 months) is termed as Short Term Capital Gain (STCG) and will be taxed @15% on full gain (irrespective of your Tax slab ) Let us take real life example , Bid price of Zomato was Rs. 76 per share and on listing day (or any day before 12 months)   you sold it for Rs. 125 per share. Your Profit is Rs. 49 Per share . suppose you incurred Re 1 as transaction charge in sale so your net profit is Rs. 48 Per share . Lot size of Zomato was 195 and you were allotted 1 lot only . If you sold full 1 lot your net profit is Rs. 48*195=Rs. 9360 . So your Tax liability will be Rs. 9360*.15%=Rs 1404 plus 4% cess. (irrespective of your Tax slab )     Now Let us understand what is Capit...

TRANSITION OF INCOME TAX RETURN FILING SITE FROM  incometaxindiaefiling.gov.in  to a all new e-filing site  incometax.gov.in New Income Tax Return Filing site has become functional from June 7, 2021 with e-filing 2.0 portal.   Giving the salient features of the "e-filing 2.0 portal", the I-T Department said there will be a "all new mobile app" and taxpayers will have a step-by-step guidance with user manuals and videos.   Besides, multiple options for on-portal tax payments like netbanking , credit / debitcard and UPI, multiple options for login like user-id or OTP, helpdesk support and chatbot are the features in the portal.     However, apart from the change in the e-filing site, some changes are also made in the ITR Forms for the Assessment Year (AY) 2021-22 in comparison to the last AY (2020-21) as well as in the process of filing your return of income over the last year   JSON Utility The Income Tax Department has ...