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Posted by VRIDHI on 26/03/2016

Few thoughts specially written for Technology/Software Industry Professionals and Doctors who Save Lives of others*

Techies: Click Here      Doctors: Click Here

*Don’t read the above articles in case you Don’t Love your Money.

Posted in B. Financial Planning | 1 Comment »

VRIDHI Connect

Posted by VRIDHI on 23/05/2015

VRIDHI services Indians residing across the world!

You need not worry about Geographical Location to avail our services!

For E-Mail Alerts Subscription: See on Left of your Screen

   

Posted in Notices/Announcements | Leave a Comment »

SWC

Posted by VRIDHI on 14/04/2015

Want to Invest Systematically and Create Wealth?

Choose SWC Plan, Invest in Stocks or MFs

Click Here for the details

Participate in the India Growth Story with as low as Rs.500/- a month!

Posted in Notices/Announcements | 4 Comments »

Plan Today

Posted by VRIDHI on 18/06/2014

Want to fulfil all your Dreams? Love your Family?

Want your Family to be Happy With u & After u?

is what you require! Click Here

*Kindly ignore, in case you don’t Love your Family!

Posted in B. Financial Planning | Leave a Comment »

Dont go by star ratings alone

Posted by VRIDHI on 23/09/2016

Look at the performance of an ‘Unrated’ fund and then compare it to the Rated ones!

We are not saying that this is the best fund and others are bad. But investors looking at ‘stars’ *** and investing themselves can be dangerous!

Always seek advice and then invest..!

Don’t believe in stars of others, believe in your stars advisors study!

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Posted in Mutual Funds | Leave a Comment »

A view on Pakistan–India conflict

Posted by VRIDHI on 22/09/2016

This article from the personal blog of #VivekKarwa. It does not directly relate to Investments but then the on going conflict does impact investors indirectly, hence we are sharing the link to the article under ‘Vivek Speaks’ category instead of publishing the full piece.

Click the link: https://emotionalidiots.com/2016/09/21/my-view-on-public-sentiment-on-56-inches/

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India Pakistan Conflict, Kashmir Dispute, Kashmir Terrorism, Fee Based Top Best List Certified Financial Planners Chennai Bengaluru India Certified International Wealth Management Advisors Companies in Chennai Bengaluru India Stock Market Mutual Funds Tax Saving ELSS Consultants Advisors Brokers Agents Managers in Chennai India

Posted in VIVEK Speaks | Leave a Comment »

How to report F&O trading in your income tax return

Posted by VRIDHI on 06/09/2016

Income from F&O deals is almost always treated as business income, irrespective of frequency or volume of transactions

by Archit Gupta, 5-9-2016, Mint, Source: http://www.livemint.com/Money/GvW3JB9PpYhvw6dvHEENjI/How-to-report-FO-trading-in-your-income-tax-return.html

Taxpayers who deal in derivatives, describe their experience with the tax filing process as vague and confusing. Here are some basics that can help.

A derivative means an instrument whose value is derived. It has no value of its own. Its price is based on the underlying asset. Derivatives of stocks and indices can be traded on Indian stock exchanges. The most popular form of derivatives are futures & options (F&O). A futures contract means an agreement to buy or sell on a future date. This contract expires on a pre-set date. On expiry, futures are executed by delivery of the underlying asset or via payment. Options and futures are alike but when you do an options contract, you can choose to not make the transaction.

Income from F&O deals is almost always treated as business income. This treatment is irrespective of the frequency or volume of your transactions. That may come as a surprise if you are salaried and have never run a business. Taxpayers who have business income have to file ITR-4.

As per Indian tax laws, incomes are reported under five heads—salary, house property, capital gains, business and profession and other sources (any residual income that cannot be classified in other heads). F&O trade is reported under the head ‘business’ in your tax return.

Reporting F&O trade as a business means:

*You can claim expenses from your business income

*As a result you may earn a profit or incur a loss

*Losses must be reported and losses have tax benefits

*Your total income (from all five heads) continues to be taxed at slab rates.

Businesses may be speculative or non-speculative, and the tax treatment is different. The income tax Act says that F&O trade is considered as a non-speculative business. Intra-day stock trades are treated as a speculative business.

Remember that cost indexation and capital gains exemptions are only allowed on sale of capital assets such as equity shares, mutual funds, land, house, and others. Since F&O trades are considered a business, tax rules of capital gains rules do not apply.

The first hurdle is to prepare your business’s profit and loss details. To calculate gross income from F&O trades, take your transaction statement for the whole year. Look at your receipts; these may be a positive or a negative value. Sum these up for the whole year. Expenses can be deducted from your gross income. Some expenses that you can deduct include rent or maintenance expenses of premises used for the business; mobile or telephone; internet charges; demat account charges; broker commission; depreciation on laptop used for trading; and any other expense directly related to your work.

Business income is calculated for the financial year for which you are filing your return. You will also have to prepare a balance sheet which is reported in ITR-4. It is basically a statement of your assets and liabilities.

Many people get confused when they have more than one type of dealing in the stock market. Some do intra-day stock transactions along with F&O trades. Some may hold stocks as long-term investments and also invest in mutual funds. In such a situation, you should calculate your business income from all of these separately. F&O trade income and intra-day stock trading will have separate expenses. Don’t worry if you have consolidated expenses; for example, you use the same premises to trade in both, or use a single phone. Simply bifurcate these expenses on a reasonable basis. You can allocate them using a ratio based on time spent.

If you invest in stocks for the longer run, you can treat them as capital assets. These will not be reported as business if you don’t trade in them often. There is an element of judgement involved and the main criteria is your intent. So, choose carefully. If you have some stocks that you trade often and some that you hold for longer, you can separate them into business and capital assets. Remember to choose on a fair basis and apply your choice consistently. You have to report gains from capital assets under the head ‘capital gains’, which has different tax rules. Mutual funds, too, may be treated as investments and taxed separately.

You will end up paying higher tax if you do not report your losses since losses have tax benefits and reduce your total taxable income. Losses from F&O can be set off from income from other heads (except salary income). Say, your loss from F&O business is Rs.1 lakh, salary income is Rs.5 lakh, income from rent is Rs.2 lakh, and interest income isRs.50,000. Your total taxable income shall be Rs.6.5 lakh.

If losses are not fully set off in the same year, you can carry them forward for 8 years. However, in the following 8 years, it can only be set off from non-speculative business income.

If you have F&O loss, you must get your accounts audited. Audit is also mandatory if your turnover exceeds Rs.1 crore. If accounts are not audited, a minimum penalty of 0.5% of turnover may be levied (maximum Rs.1.5 lakh). The due date of filing of tax returns for financial year 2015-16, where audit is mandatory, is 30 September 2016.

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Posted in Taxation | Leave a Comment »

Hold on to your Investments, the India story is yet to unfold

Posted by VRIDHI on 05/09/2016

The previous personal article of mine under MarketFastFood series, written quite some time back on 17-1-2016 was titled ‘Markets have crashed, your confidence in investing need not’ you can Click Here to read the same. One of the lines related to markets in that article read like this: ‘I feel the worst case scenario for the whole year is in the range of 23300-23000

The year 2016 had begun with despair. Market tumbled and most investors expecting better performance in the beginning of the year were left shocked at that point of time. Most advisors including us at #VRIDHI had to attend many frantic calls of clients who were not ready to believe what was happening, we had to console them and inject confidence.

You would have seen many people in market saying ‘we said so’ after the occurrence of various market events, but then most of us wonder when did he say so?

We at VRIDHI are not trying to boast here, but touch wood the Sensex has most of the times behaved the way we have been mentioning at various platforms, be it written articles of television shows.

In the beginning of the year we said 23300 – 23000 should be the worst case scenario for the market in 2016. Now let’s see what happened after we posted that article:

On 11-2-2016: Sensex hit a Low of: 22909, and then Closed at: 22952, which was hardly 50 points below our lower range 23000. +/- 300 points is negligible on an index of 23000.

On 12-2-2016: Low was: 22600, and the Close was at: 22986, again respecting us!

On 29-2-2016: there was panic in the market and hit a Low of: 22495, but then Sensex recovered as though it is reading our posts and Closed at: 23002, 2 points above 23000..!

Since the beginning of the year, also mentioned in the previous article was: “On the upper side Target.1 should be in the range of 29140-29500 and if that is broken decisively we may test Target.2: 30800-31320

We are today at 28532 which is just around 700 points away from the lower end of our Target.1, hence we at VRIDHI thought that it’s all the more important now to post our views as the time is right. Frankly many investors tracking us closely have been asking us through mails and calls for our view.

Our view remains same, we are bullish on the India story and investors willing to wait will make money. Investing is a continuous process, you cannot put some money and then wait to make profit. Particularly in stock markets you need to invest as and when you have some surplus. Had you invested when the Index last hit 30000, chances are quite high that you must not be making big profits till date. But had you been putting in even little amounts as and when you had some surplus cash, you would be making handsome money by now.

No reasons to lose patience, just hold on to your investments in Equities or Mutual Funds. The India story will soon unfold. Ever since the present government assumed office, I have been very vocal that we will see #AchheDin only after mid 2017. Let government do any magic, showing results before that would not be possible. The government knows that actions have to be continuous and they are indeed working overtime and taking decisions fast. Click Here to see one such example.

The world is looking at us seriously today, be it under Make In India program or other schemes, companies from all type of sectors like Services, Start Ups, Manufacturing etc., are looking towards entering India and setting up their shop. Even Chinese companies have started looking towards India. The labour charges in China have shot up in recent past and India has the ability to provide cheap labour even now. Chinese mobile handset manufacturer #LeEco is also about to set up shop here in India.

Most of the economic parameters are improving in India. They will improve further in future. You can yourself see that even the opposition in India does not attack the government or the prime minister much on economic front. What they generally talk is Dalits, Kashmir, Army should not attack terrorists in Kashmir, Minorities, Reservations, Ambanis, Adanis and other retrograde topics which no youth in the country is interested in.

People of the country want growth and India has the ability to grow. In the process Investors will make money… ofcourse if they Invest! We find even in this 21st century people saying that #FixedDeposits are the best option an investor can ever get. Rubbish!

Stay invested, we will soon test the above mentioned Target.1 and Target.2, Midcaps and Small Caps are on the costlier side hence caution is advised. No major correction is anticipated. On an index of 28000+ swift corrections of 5% to 10% should not cause any worries to us.

If you have never invested in markets, take a call and decide to invest today atleast through #MutualFunds and we at VRIDHI assure you that we won’t charge any additional fee atleast till the end of this year. Work life is very fragile today and what we said for Techies is proving to be true again and again, after the recent job losses. Techies can read that article Click Here. So don’t miss the opportunity of getting some solid advice without paying any additional fees to us.

We will once again update when we are hovering around the Target.1 levels. If all other things remain same as they are today, we will test the first target before seeing any major correction, hence we at VRIDHI don’t look at any major support levels right now.

Fixed Deposit investors, read this article also: Click Here

Hence if Invested – stay Put and if Not Invested, what are you waiting for?

Thanks and Regards

Vivek Karwa

Mail me directly on the email id provided below.

Also subscribe for email alerts from VRIDHI.

Scroll to top left of your screen, if you are reading this on your mobile, scroll to bottom most and click View Full Site.

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Posted in A. MarketFastFood (MFF) | Leave a Comment »

FATCA updation

Posted by VRIDHI on 18/07/2016

Attention VRIDHI Investors and future VRIDHI Investors

As per the latest circular, the folios of all those who still have not updated the FATCA details may get Auto-Redeemed.

Kindly update details immediately, you can do it online, details here in Table.1: https://vridhi.co.in/mf-online/

Update all: ‘CAMS Fatca’ ‘Karvy Fatca’ ‘FT Fatca’ ‘Sun Fatca’

In case you are not able to do it, please take prints sign and send them to VRIDHI office immediately.

Call us in case of doubts

Posted in Mutual Funds | Leave a Comment »