[JMaruru]

S&P 500 has overshot it's 200 DMA. So today there should be a rally in Nifty. All the three indices have come out of their correction phase.

[Ponmayilal]

The "expected" rally to nifty 5300 fizzled out, so much so I ended up booking a loss of Rs.3K.

But that was because in a moment of lapse in concentration, I bought 1000 Unitech shares for Rs.71.30 while my intended purchase price was Rs.70.30 and downwards ( mistook 71.30 for 70.30 when I returned to the computer after a few minutes). That led to a series of purchases that brought down the average cost to Rs.70.60. I was hoping that there will be a spurt in the last hour and I can still romp home with a decent profit but that was not to be. Though I could have taken delivery, I did not want to part with cash but preferred to book a loss at the last minute. The only saving grace is that I am still in the positive and can afford to make a few more errors.

I have added a few more shares to my kitty in small numbers. They are Fortis Health Care (Rs.138.69), Siemens (Rs.720.68), and Dr.Reddy's (Rs.1415.16).( all average prices inclusive of all charges)

[Ponmayilal]

Originally Posted by Ponmayilal

..............Turning to tax, the Govt. of India put on the public domain the Draft Direct Taxes Bill for discussion sometime in Aug/Sep 09. Budget Feb 2011 may find its implementation.

I had given a cursory reading then and the one thing that struck me is that it proposes to do away the long and short of gains. Any gain is a gain and will be taxed.

But fear not. The Govt. is already rethinking on many of the provisions on representations from various quarters and it remains to be seen whether one year holding of stocks will continue with its exemption. Even if not, my thinking is that atleast for shares bought prior to the passage of the new bill status-quo will be maintained.

You may view the draft code, discussion paper and comment by clicking on the Draft Direct Tax code link here ......

And yes. As already indicated by me in the above post, the Government has changed its stance in so far as gains on sale of securities is concerned.

"In the case of listed securities, where there is now no long term capital gains tax, the proposal is that a proportion of the gain in the value of the securities will be added to the person's income, with the proportion declining as the period of investment increases."

Be aware that such proportion of gains will not be taxed under a seperate head as of now, but will be included in your income and you may have to pay tax according to the income slab rates.

Whether the proportional rates will be codified in the code itself or the slabs will be part of each financial bill as is the income slabs now, is not yet clear.

The bill on Direct Tax Code will be brought before the parliament in the monsoon session. The government will entertain suggestions on the revised draft till June 30.

[JMaruru]

Originally Posted by Ponmayilal

"In the case of listed securities, where there is now no long term capital gains tax, the proposal is that a proportion of the gain in the value of the securities will be added to the person's income, with the proportion declining as the period of investment increases."

The bill on Direct Tax Code will be brought before the parliament in the monsoon session. The government will entertain suggestions on the revised draft till June 30.

This is not good. They have received lots of gains from 3G auction and tax collections are also good. Why are they doing this ?

BTW, is there anyways you can calculate capital gains within ICICIDirect Online? If not, are there any tools available out there ?

Please advise.

[carboy]

Originally Posted by JMaruru

BTW, is there anyways you can calculate capital gains within ICICIDirect Online?

When you login & go to the trading page, they have a link somewhere which says something like "Capital Gains Beta" which does this.

[JMaruru]

Originally Posted by carboy

When you login & go to the trading page, they have a link somewhere which says something like "Capital Gains Beta" which does this.

I could not find the link to "Capital Gains Beta" in ICICIDirect. If possible, please provide the screenshots.

[Alter_Ego]

Originally Posted by JMaruru

I could not find the link to "Capital Gains Beta" in ICICIDirect. If possible, please provide the screenshots.

Hope this helps.
To reach here you will have to go to the portfolio section.

[BaCkSeAtDrIVeR]

Since 2006, I have been asked 4-5 times by my broker to turn up at their office to sign various papers - KYC, this, that, etc. Now, they have asked for revision of the power of attorney to operate the Depository account. While all this is understandable, being compliance with SEBI guidelines, I find this irritating.

I have the option of sending the cdocuments by courier, but the brokers office nearer than the courier office. ;-D

How often have others here needed to sign physical papers after you opened the account with your broker?

[Ho0ligaN]

I am planning on investing 5-10k a month, so I cant particularly say I will bring x amount upfront to the brokerage executive. What is the least brokerage I can bargain for in this situation? I am currentlty offered .49% and 0.049% for delivery and intraday respectively. Should I look elsewhere? I am considering Kotak.

[SmartCat]

Don't bother too much about brokerage costs. It is negligible when compared to the possible returns you can make by investing in stocks.

[Ho0ligaN]

No I just wanted to know if its inline with other firms or am I being taken for a ride?

[Fordmanchau]

Originally Posted by Ho0ligaN

I am currentlty offered .49% and 0.049% for delivery and intraday respectively. Should I look elsewhere? I am considering Kotak.

Kotak is costly, but the rates being offered is standard across all the brokerage houses.
Generally for first timers, and people who will invest less, this rate is offered.Though if you can bargain with other brokerage houses, like, Indiainfoline, Nirmal Bang, Sharekhan, Anand Rathi, etc, probably you might get a better rate,but difference in actual brokerage amounts will be very less until and unless you start playing huge volumes. So don't worry about it.

[BaCkSeAtDrIVeR]

hmmm... I broker charges less than 0.6% for me. It is rounded to nearest figures, so slight difference is there. Additionally, there is STT and exchange fee and cess ad service charge and what not and of course, Account Maintenance charges for the demat account.

Glup!!!


Edit - my earlier query - about frequency of asking for KYC - any answers?

[vsh]

Originally Posted by BaCkSeAtDrIVeR

Edit - my earlier query - about frequency of asking for KYC - any answers?

as long as SEBI is making new rules and new formats for KYC and other documents you have to keep on signing:

[JMaruru]

What is happening with ICICIDirect ? I could not access my account today! They just say that, they regret the inconvenience.