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Demat Account: Demat account is necessary for earning from share market, know how to open online

Pravesh Maurya — Thu, 13 Apr 2023 11:02:09 +0000

To invest in the stock market, it is necessary to have a Demat account. Without this you cannot invest money in any IPO. Along with this, buying and selling of mutual funds, bonds, government securities etc. also requires a demat account.

This account can be opened through any Depository Participant (DP). In such a situation, the first question that arises is what is a Demat account. This account is like a bank account where you can save your shares after buying them. Whereas people keep money in the bank account. Demat account is mandatory for investing money in any IPO. Let us know how this account can be opened.

Know about the process of opening a demat account

In order to open a demat account, investors must first choose a valid Depository Participant (DP). This depository participant can be any bank. Apart from this, DP can also be a broker or financial institution. Different DP’s brokerage charges, annual charges are different. First of all, choose your DP to open a Demat account. After this fill a form for account opening and submit it.

This important document is needed to open a demat account.

To open a demat account, you will need Aadhaar card, PAN card, two passport size photographs as ID proof. Along with this, you will also have to give a canceled check in the bank. Then the bank will ask you to sign an agreement. Please read this agreement thoroughly before signing it. After this the bank will open your demat account. Then you will get a Client ID through which you can login to your Demat account. Along with this, you will also get an instruction slip which you can use at the time of purchase and sale of shares.

How to open demat account online

If you want to open a Demat account sitting at home, then first of all visit the official website of that DP.
After this click on Demat Account option.
After this, you complete the further process of opening the account.
Then upload the asked documents.
After this, the account will call or message you to verify.
After this all the details will be verified. After this your demat account will be activated.
Lastly, you will get the Beneficiary ID or Demat Account Number.
Now through this account you can invest money in the share market.

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Income Tax Big News : Tax of Re 1 will not have to be paid even on earning of 10 lakhs, Know full details

Pravesh Maurya — Sat, 12 Nov 2022 08:28:00 +0000

Income Tax Saving: Form-16 has been issued by the companies. The last date for filing ITR has been fixed by the Income Tax Department as July 31. In such a situation, if you are also thinking of paying tax on income of 10 lakh rupees, then you are wrong.

If your salary package is 10 lakh rupees and you pay a large part of your earnings in the form of tax, then be careful. Perhaps you would think that there is no way to save tax, in such a situation, if it is right to pay tax, then you are wrong. Not only this, even if your salary package is 10.5 lakh rupees, even then you will not have to pay 1 rupee as tax. Let’s know the complete maths…

On a salary of 10.5 lakhs, you fall in the slab of 30 percent tax. Because 30 percent income tax is liable on annual income above 10 lakhs.

This is the complete maths
1. If your salary is 10.5 lakh rupees, then first of all subtract 50 thousand given by the government as standard deduction. In this way your taxable income is now Rs 10 lakh.

2. Now you can claim Rs 1.5 lakh under 80C. In this, you can claim children’s tuition fee, PPF, LIC, EPF, Mutual Fund (ELSS), principal of home loan etc. In this way, your taxable income here has been reduced to Rs 8.5 lakh.

3. You have to invest 50 thousand under National Pension System (NPS) under 80CCD(1B) to make tax zero (0) on salary of 10.5 lakhs. In this way your taxable salary has come down to Rs 8 lakh.

4. Now under Section 24B of Income Tax, you can claim tax exemption on home loan interest of Rs 2 lakh. In this way, now your taxable income has come down to Rs 6 lakh.

5. Under Section 80D of Income Tax, you can claim a premium of 25 thousand rupees medical health insurance for your family (wife and children). Apart from this, senior citizens can claim 50 thousand for health insurance premium paid for parents. After claiming total health insurance premium of 75 thousand, your taxable income has come down to 5.25 lakhs.

6. Now you have to donate 25 thousand rupees to any organization or trust to bring your taxable income to 5 lakhs. You can claim it under Section 80G of Income Tax. On donating 25 thousand, your taxable income came down to Rs 5 lakh.

You will have to pay zero tax
, now your taxable income has been reduced to Rs 5 lakh. On the income of 2.5 to 5 lakh rupees, at the rate of 5 percent, your tax becomes Rs 12,500. But there is an exemption from the government on this. In this case your tax liability becomes zero.

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Smart Tax Saving Plan: Big earnings will come with tax savings, invest here for higher returns

Pravesh Maurya — Sat, 23 Jul 2022 12:28:11 +0000

Tax Saving Plan: Before investing, you should see where you will get the highest return. With this, how much tax are you saving? You should invest only after seeing all this. By investing in a good place, you can earn big profits for tax savings.

Every person should save in his life. By making small savings, you can achieve your- financial goals. In this episode, you will tell you where you will benefit in tax along with the best returns on investing. Benjamin Franklin rightly said – Death and taxes are the only two things in life that are certain. The former cannot be avoided, but we can strive to reduce the tax burden and increase investment returns. This is the first and foremost smart step that can be done to get maximum return on one’s investment.

Earning Strong With Tax Savings

Tax planning is an important aspect when it comes to saving on returns. If you are planning to invest in tax-saving investments like PPF and ELSS, more time is needed. If there are changes in your status, such as change in rental agreement (HRA), consider these and inform the employer about the TDS.

Invest in the name of parents and spouse

A great option to avoid income clubbing is to invest in the names of your parents or grandparents and spouse who may be in lower tax brackets. Bansal explains, if one of your parents is above 65 years of age and does not have any investments, you can make investments in their names to earn tax-free interest. Every adult above 60 years of age is already entitled to a basic exemption of Rs 3 lakh. Additionally, if you want to take the help of a grandparent who is above 80 years of age, the exemption is more than Rs 5 lakh.

Invest in the name of children

Your children can help you save tax like your parents. But this will happen only if your child is an adult i.e. above 18 years of age. A child is treated as a separate person for tax purposes once he becomes an adult. He will also be eligible to open a demat account and invest in stocks and mutual funds with the money gifted by you. Bansal says, long term capital gains up to Rs 1 lakh will be tax free every year. Whereas short term capital gains will be tax free up to a standard exemption of Rs 2.5 lakh per annum.

NPS is a good option NPS

can be a good option for your retirement money in India with low annuity rates and long term. Experts say that NPS has been considered an unattractive investment option. According to Bansal, the reforms in the NPS withdrawal rules have brought about some change. Thereby, the pension scheme has become more attractive in their 50s. The new rule could be a somewhat different tax-saving option for investors.

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