Team-BHP > Shifting gears


View Poll Results: Stocks as a percentage of my net assets are -
0 - 25% -- I'm like the most conservative Indians. I love FDs. 396 32.27%
26 - 50% -- I have a few stocks. 549 44.74%
51 - 75% -- I'm an active trader. 201 16.38%
76 - 100% -- Hey, I'm an i-banker!!! 81 6.60%
Voters: 1227. You may not vote on this poll

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Old 5th March 2021, 15:54   #4546
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Re: Do you play the stock market

There are some 'Baskets' of stocks available in sites like HDFC Securities / ICICI Direct. Does anyone have a view of these and how easy it is to choose one and stay invested? I am not an equity person and will probably look to start exploring and learning after seeing several moons on this earth, but I guess its never too late to start.
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Old 12th March 2021, 09:36   #4547
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Re: Do you play the stock market

A dividend related query for the experts here. I received a small sum (<INR 5000) dividend from ITC on 10th March. I can see they have deduced a TDS of 11.79%. Can anyone tell me the logic/reason behind this? Are they not supposed to deduct TDS for >INR 5000 dividend sum?
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Old 12th March 2021, 11:12   #4548
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Re: Do you play the stock market

Quote:
Originally Posted by Pancham View Post
A dividend related query for the experts here. I received a small sum (<INR 5000) dividend from ITC on 10th March. I can see they have deduced a TDS of 11.79%. Can anyone tell me the logic/reason behind this? Are they not supposed to deduct TDS for >INR 5000 dividend sum?
Even I have received this dividend from ITC, but they have not deducted the TDS. But I have heard from my friend that even for his there is a TDS whenever he receives dividend for his shares. So, I have no idea on what basis they deduct the TDS?
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Old 12th March 2021, 11:14   #4549
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Re: Do you play the stock market

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Originally Posted by Pancham View Post
Are they not supposed to deduct TDS for >INR 5000 dividend sum?
You should have received an email from the registrar explaining the amount paid and the TDS deducted. Some companies consider total dividend paid in the year and then deduct tax accordingly. This is second dividend of ITC in the current financial year and it is possible that cumulative dividend amount in your case crossed Rs. 5000. In any case, drop a mail to the registrar with your query.
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Old 12th March 2021, 12:03   #4550
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Quote:
Originally Posted by Simhi View Post
You should have received an email from the registrar explaining the amount paid and the TDS deducted. Some companies consider total dividend paid in the year and then deduct tax accordingly. This is second dividend of ITC in the current financial year and it is possible that cumulative dividend amount in your case crossed Rs. 5000. In any case, drop a mail to the registrar with your query.

Bang on!! You are right. I did not think of it this way. The TDS does amount to 7.5% for the cumulative amount. Thanks a lot!!
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Old 12th March 2021, 12:06   #4551
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Re: Do you play the stock market

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Originally Posted by SmartCat View Post
\
Even if stocks tank, you will still get the returns that you were getting in liquid funds anyway (as dividends). But out of this shortlist, stick to business brands and consumer brands as mentioned before. Such companies will have stable dividend payout year after year.
As a newbie investor and trader, have been following your posts since the last few months, thanks a lot for the informative posts, they are quite helpful.

Can you suggest a nice website where we can find dividend history of different companies. Thanks in advance.
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Old 12th March 2021, 12:08   #4552
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Re: Do you play the stock market

I always maintain an excel sheet where I diligently enter short/long term stocks/MF capital gains made, F&O income and dividends received. This makes it easier for my CA to quickly compute and file returns.

But man, this TDS on dividends is making my head spin.

Quote:
Originally Posted by wheelguy View Post
Can you suggest a nice website where we can find dividend history of different companies. Thanks in advance.
I don't bother looking at dividend per share. Instead, I look at dividend payout ratio for each year. As long as it is consistently above 15% or 20%, the stock enters my watchlist. Dividend payout ratio for last 10 years is displayed on screener.in:

Do you play the stock market-screenshot_1.jpg

But Moneycontrol.com seems to have the dividend history of each stock. Do a Google search for "STOCKNAME moneycontrol dividend summary"
https://www.moneycontrol.com/stocks/...hp?sc_did=CI01

Last edited by SmartCat : 12th March 2021 at 12:16.
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Old 12th March 2021, 14:40   #4553
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Re: Do you play the stock market

Quote:
Originally Posted by SmartCat View Post
I always maintain an excel sheet where I diligently enter short/long term stocks/MF capital gains made, F&O income and dividends received. This makes it easier for my CA to quickly compute and file returns.
But man, this TDS on dividends is making my head spin.
This is such an avoidable headache. If only it was mandated to all companies to either
a) allow the shareholder to set their desired tax rate (irrespective of the dividend amount)
or
b)record and publish this in say, the form2AS (or an equivalent source).

One wouldn't be forced to manually track these and calculate the effective tax.
I am following the same approach as you are, logging information in an excel.
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Old 12th March 2021, 19:10   #4554
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Re: Do you play the stock market

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b)record and publish this in say, the form2AS (or an equivalent source).
TDS on Dividends (or interest for that matter) will be reflected in your Form 26AS. There might be a lag of a quarter, at the most, between receipt of dividend and the Form 26AS entry.
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Old 13th March 2021, 10:34   #4555
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Re: Do you play the stock market

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TDS on Dividends (or interest for that matter) will be reflected in your Form 26AS. There might be a lag of a quarter, at the most, between receipt of dividend and the Form 26AS entry.
Can you please confirm if you are able to see entries for dividends below 5k?
In my from 26AS, I see that the dividends received >5k is recorded. However, none of the dividends <5k are reflected in it, perhaps because tax credit in those cases is 0?
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Old 13th March 2021, 13:04   #4556
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Re: Do you play the stock market

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Originally Posted by whitewing View Post
Can you please confirm if you are able to see entries for dividends below 5k?
In my from 26AS, I see that the dividends received >5k is recorded. However, none of the dividends <5k are reflected in it, perhaps because tax credit in those cases is 0?
Yes. There are entries below 5k reflecting, without any tax deducted.

Though not sure if it covers all transactions, have yet to reconcile.
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Old 16th March 2021, 12:52   #4557
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Re: Do you play the stock market

My relative suggests me to keep one share and sell remaining to avoid closing charges or something which I don't understand much. He says by keeping one share for each stock we sell, we're not closing the account thereby avoiding closure charges!
Is he right? I couldn't find any related info from Google.
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Old 16th March 2021, 16:38   #4558
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Re: Do you play the stock market

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Originally Posted by GladRagu View Post
My relative suggests me to keep one share and sell remaining to avoid closing charges or something which I don't understand much. He says by keeping one share for each stock we sell, we're not closing the account thereby avoiding closure charges!
Is he right? I couldn't find any related info from Google.
Closure charges are very minimal compared to maintaining a Demat account with multiple shares. In fact many brokers don't charge investors closure charges.
This isn't like pre-closure of loans, to levy closure charges.
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Old 16th March 2021, 19:16   #4559
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Re: Do you play the stock market

Is it safe to keep shares worth 60-70L in one broker account (Zerodha)?

Or is it better to split them in 2-3 broker accounts like Icicidirect, etc.?
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Old 16th March 2021, 19:43   #4560
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Re: Do you play the stock market

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Originally Posted by mukeshgoel View Post
Is it safe to keep shares worth 60-70L in one broker account (Zerodha)? Or is it better to split them in 2-3 broker accounts like Icicidirect, etc.?
Better to keep it in a couple of brokerages, but there is no risk as such. A stock broker is just like a real estate broker, who facilitates the transaction. The apartment that you buy via a broker will still be in YOUR name.

Similarly, when you buy stocks via a broker, he is just facilitating the transaction. Stock will be in your name with either NSDL or CDSL, a central stock depository. If a broker like Zerodha goes down under, you can transfer shares from Zerodha to ICICIDirect via either NSDL website or CDSL website.

Proof of ownership of shares is the consolidated monthly NSDL statement, which you should be receiving. It will list all the "dematted" stocks, mutual funds, bonds and insurance policies :

Do you play the stock market-screenshot_1.jpg

If you are not receiving NSDL statement, sign up with your registered email ID and PAN number at
https://nsdlcas.nsdl.com/
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