[SmartCat]

Originally Posted by Sri Vathsa

Is it better to open LLP or get registered as a sole proprietor/individual business? However, it is legal to trade if your primary business is something else and you are trading along with your regular business.

I have not done any LLP stuff. I invest/trade as an individual.

- For futures & options trading, it is treated as 'business income' (since I'm not salaried, and I have no other source of income other than the financial markets). F&O trading is taxed based on tax slab. I can even "rollover" F&O losses to the next year, just like a business does. Brokerage, NSE charges, STT, CA Fees, phone/internet/TV/electricity expenses, any software subscription related to markets all go under the expenses column thereby reducing tax liability. I can even claim depreciation on phone/tablet/laptop/desktop/printer/monitor purchase, since it used for "business".

- We can classify stocks trading too as business income. Or pay flat 15% STCG. That's our choice. Since I've been paying 15% STCG for many years, I've stuck to this.

- For long term investing (stocks/MF), I have to pay LTCG.

- Debt mutual funds (if sold before 3 years) interest income is added to business income. If debt mutual funds are held over 3 years and then sold, it is taxed at (20% minus inflation)

My file has gone to the income tax department for scrutiny a couple of times. None of the IT officers had any issues with the above setup. As long as one doesn't go overboard artificially inflating the expenses numbers, it is fine. I'm basically following what's written in this article:
https://zerodha.com/varsity/module/m...-and-taxation/

However, I'm not sure if any of this is applicable to somebody who is salaried or somebody who has traditional business or professional income.

[PatienceWins]

My networth is mostly in land (almost 90% - mostly inherited), without any income. I would like to move it to equity as land has not appreciated much, no income and maintenance hassles. The long term capital gains tax on selling the property is high. I see the option to save tax by buying another property within the stipulated time period, but it defeats the purpose of selling property. Any idea on how to diversify into equity without taking a heavy tax hit? Thanks

Note: I have been investing in stock market for the last 15 years with decent returns, so it it not a blind move without basic knowledge of markets.

[Ananthang]

Originally Posted by PatienceWins

My networth is mostly in land (almost 90% - mostly inherited), without any income. I would like to move it to equity as land has not appreciated much, no income and maintenance hassles. The long term capital gains tax on selling the property is high. I see the option to save tax by buying another property within the stipulated time period, but it defeats the purpose of selling property. Any idea on how to diversify into equity without taking a heavy tax hit? Thanks

Note: I have been investing in stock market for the last 15 years with decent returns, so it it not a blind move without basic knowledge of markets.

Since it is inherited, can this be shown as gift from parents, in that case the Tax liability is less I think to be valued price at the time of buying. I Leave it for other superiors to add their view.

Invest in 5 Year Capital gains bond, and after that it is available to you for stock market investments.
I think they are some Rural electrification bond if I am right.

[Bomi]

Originally Posted by PatienceWins

My networth is mostly in land (almost 90% - mostly inherited), without any income.

If the land is agricultural land, then it is not considered a capital asset. Hence, entire gain on sale will be exempt from tax. Google definition of agricultural land as per IT Act, if you are not sure.

[PatienceWins]

Originally Posted by Ananthang

Since it is inherited, can this be shown as gift from parents, in that case the Tax liability is less I think to be valued price at the time of buying. I Leave it for other superiors to add their view.

Invest in 5 Year Capital gains bond, and after that it is available to you for stock market investments.
I think they are some Rural electrification bond if I am right.

I inherited the property through a family partition deed, so gift not applicable here. Will explore the Capital gains bond option. Thanks

Originally Posted by Bomi

If the land is agricultural land, then it is not considered a capital asset. Hence, entire gain on sale will be exempt from tax. Google definition of agricultural land as per IT Act, if you are not sure.

It is not an agriculture land. It is in a residential area in Kerala, just that it is lying idle. Maintaining it is a hassle as the local people are disposing waste there, trying encroachments, calling me with complaints etc. I reside in Bangalore and that makes it more difficult. I need to dispose it and find some avenue for regular income. Thanks

[LonelyPlanet]

technical question if i sell all my holding of of a particular stock on bonus record date - Will i get the bonus shares or not ?

[carlosTHEjackal]

Originally Posted by LonelyPlanet

technical question if i sell all my holding of of a particular stock on bonus record date - Will i get the bonus shares or not ?

It should be record date +1 day to get the bonus shares allotted.
You will not be eligible for bonus shares if you sell on the record date.

[SmartCat]

Gents,

I have modified my screener.in settings/filters. Changes made:

- Deselected all banks/NBFCs from the list. We simply cannot trust the profit numbers published by many of these companies. NPAs can be hidden thanks to creative accounting. By not investing in finance companies, we might miss the odd Bajaj Finance or HDFC Bank, but that is a 'risk' (of lower returns) I'm willing to accept.
- Re-classfied all stocks into Giantcap (>500,000 cr market capitalization), Largecap (50,000 cr to 500,000 cr mcap), Midcap (5,000 cr to 50,000 cr mcap), Smallcap (500 cr to 5,000 cr mcap) and Microcap (50 cr to 500 cr mcap)
- All stocks in the list will offer atleast 2% dividend yield, including growth and value stocks. This filter will ensure that we do no overpay for stocks.

GIANTCAP STOCKS (nothing in the list right now)
https://www.screener.in/screens/394340/Giantcap-Stocks/

LARGECAP STOCKS
https://www.screener.in/screens/3943...ecap-Dividend/
https://www.screener.in/screens/394315/Largecap-Value/
https://www.screener.in/screens/394316/Largecap-Growth/

MIDCAP STOCKS
https://www.screener.in/screens/394318/Midcap-Dividend/
https://www.screener.in/screens/394321/Midcap-Value/
https://www.screener.in/screens/394322/Midcap-Growth/

SMALLCAP STOCKS
https://www.screener.in/screens/3943...lcap-Dividend/
https://www.screener.in/screens/394329/Smallcap-Value/
https://www.screener.in/screens/394332/Smallcap-Growth/

MICROCAP STOCKS
https://www.screener.in/screens/3943...ocap-Dividend/
https://www.screener.in/screens/394335/Microcap-Value/
https://www.screener.in/screens/394338/Microcap-Growth/

Notes:

- My definition of 'Growth stocks' is high-ish RoE (> 8 to 15%, depending on marketcap). But such stocks will show up on this screener only if it is trading at reasonable PE ratio (<8 to 20, depending on marketcap).
- My definition of 'Value stocks' is low Price to Book Value (< 0.6 to 1.0 PBV, depending on marketcap)
- My definition of 'Dividend stocks' is high dividend yield at current market price (> 3% to 6%, depending on marketcap)
- This is just a shortlist of stocks. It needs further reasearch before you decide to invest. Check website, read annual reports, avoid stocks with inconsistent profit history, dividend history (missing dividend in a year) and dividend payout history (5% in one year, 25% in another)
- Screener.in data regarding dividend yield, PE ratio etc might not be accurate. Double check at valueresearchonline.com
- As you go down the market cap list, the likelihood of encountering kachra stocks goes up. Be cautious when looking at smallcap and microcap stocks list.
- If you want to include banks/NBFCs too, just remove the 'debt to equity' requirement I have entered for each filter:

[thoma]

Originally Posted by SmartCat

I have modified my screener.in settings/filters. Changes made:

Many of the companies in the list has grown 5 to 6 times the valuation from last year. I'm wondering why my mutual fund's managers could grow funds to only double it was last year.

Only because I am not able to pick stocks and follow them up closely, I'm delegating it to mutual funds.

[joslicx]

Originally Posted by thoma

Many of the companies in the list has grown 5 to 6 times the valuation from last year. I'm wondering why my mutual fund's managers could grow funds to only double it was last year.
.

Their job is not to maximize returns for you. Their job is to to beat their benchmark which will ensure their job security.

[huntrz]

Originally Posted by thoma

Many of the companies in the list has grown 5 to 6 times the valuation from last year. I'm wondering why my mutual fund's managers could grow funds to only double it was last year.

Only because I am not able to pick stocks and follow them up closely, I'm delegating it to mutual funds.

They operate at a different scale. Many things that retail investors can do is out of bound for them due to the fund size and restrictions/policies.

[wheelguy]

Originally Posted by thoma

Many of the companies in the list has grown 5 to 6 times the valuation from last year. I'm wondering why my mutual fund's managers could grow funds to only double it was last year.

Only because I am not able to pick stocks and follow them up closely, I'm delegating it to mutual funds.

Mutual Funds' scale and complexities are quite different to an individual investor. They have quite a number of restrictions like a large cap fund has to select its portfolio from the large cap companies list whereas an individual can choose any company that he/she wishes to. Also the complexities involved are huge, they have to constantly handle large number of withdrawal and purchase transactions which is great a hassle. Also Mutual Funds are designed for those who do not want to or cannot deal directly with stock markets, it relieves them from lot of stress and frees up lot of time too, all this while being safer than direct equity investments. It's not that the fund managers cannot generate good returns, they have to operate under restrictions. Also they are forced to be on the safer side rather than just going after returns aggressively, an equity fund which can return ~20% CAGR is considered a good fund.

[Pancham]

Experts, any idea why I cannot see my Reliance Partly Paid shares in my demat account? I had promptly paid the first call amount and have confirmation sms from KFintech as well. But they seem to have vanished from my account altogether.

Should I be worried?

[GTsunny]

Originally Posted by Pancham

I cannot see my Reliance Partly Paid shares in demat account?

I checked with one of my family members, he had applied for a small amount. He confirmed that, he authorised (online) the debit for 1st call around last week of May 2021 and, the debit of the money took place around 1st week of June 2021.

Also, he confirmed that, he can see his partly paid up shares in his Demat ac.

These RIL shares would show up separate from your earlier accumulated RIL shares (if any) and also, pl check if there is a page 2 in your holdings list.

If these solutions don’t work, pl check with your trading and demat securities RM and, ask them why it’s not showing pl.

[Pancham]

I am positive there is no page 2. I have been trying to reach Kotak Securities since morning but no response in the Whatsapp Chat or helpline. Also, my RM's phone is temporarily out of service. Not sure what is going on.

EDIT: The helpline executive said its is appearing in their system. Not sure what is happening.