How to invest in Share market

We need to think twice before investing money in share market. Share market is the place where ever one likes to earn money easily. But it all depends on the knowledge, luck, global issues, other country economical market, currency variations, and many other things. Share market is a place to get by watching on the system.

There are different types of sectors to invest in  the share market like Real Estate, Oil and Refinery, Steel and infrastructure, Food production companies, Finance, Information Technology, Jewelry, medical drugs companies, banks, insurance companies etc. You need to decide which company to invest by yourself. You can take some suggestions from the experts, but final decision is yours.

You can do the research by knowing about the companies or browsing on the internet. You can search for company back ground, how good returns people are getting in the companies, ups and downs etc. Always go for long term investments. If you go for the mid cap stocks that will not go worse in the future. If you go for large companies, either they may go up or come down drastically like any thing. You will be affected if you got loose in these investments.

A broker is the person who handles all the transactions for you when you are investing money. You have different types of brokers like I said to you before they will be charging for all the things choosing companies, experts suggestions etc and you can rely on them confidently. But it all depends on the market fluctuations. Some brokers charge you less amount; you will not get any expert suggestions here.

You need to understand the market before investing in the stock market and other investment opportunities. If you decide to purchase shares you have two ways to go. You can register with any brokerage company and you can go for full service brokerage and you can leave it in their hands. If money is consideration for you, you can go with a discount brokerage. Here you won’t get all the services like experts suggestions etc; they don’t offer the assistance like full service brokerages.

If you have more money in your saving account. It is better to go and invest your money in share market, because your money can be increased by a substantial amount. You will get very less amount for saving account (i.e. up to 2.5 %). If you invest in the share market, you may get annual returns up to 10 % or more than that.

There is always risk in anything you do. You need to more concentrate on the share market, before buying shares of any company.

You need to understand some basics when you invest in share market .

1) Learn more about stocks and you need to know why companies issue them to us.

2) You need to know all the risks which you need to take in the future? It all depends on many factors like currency trading, foreign company investments, etc.

3) How much you are going to invest and how long you want to invest this money.

4) If you invest money in the share market, you can reduce your tax amount.

Note: Please take your Financial Adviser Suggestion before you take any decision.

Article by Kranthi Seo Consultant

How to invest in Share market

We need to think twice before investing money in share market. Share market is the place where ever one likes to earn money easily. But it all depends on the knowledge, luck, global issues, other country economical market, currency variations, and many other things. Share market is a place to get by watching on the system.

There are different types of sectors to invest in  the share market like Real Estate, Oil and Refinery, Steel and infrastructure, Food production companies, Finance, Information Technology, Jewelry, medical drugs companies, banks, insurance companies etc. You need to decide which company to invest by yourself. You can take some suggestions from the experts, but final decision is yours.

You can do the research by knowing about the companies or browsing on the internet. You can search for company back ground, how good returns people are getting in the companies, ups and downs etc. Always go for long term investments. If you go for the mid cap stocks that will not go worse in the future. If you go for large companies, either they may go up or come down drastically like any thing. You will be affected if you got loose in these investments.

A broker is the person who handles all the transactions for you when you are investing money. You have different types of brokers like I said to you before they will be charging for all the things choosing companies, experts suggestions etc and you can rely on them confidently. But it all depends on the market fluctuations. Some brokers charge you less amount; you will not get any expert suggestions here.

You need to understand the market before investing in the stock market and other investment opportunities. If you decide to purchase shares you have two ways to go. You can register with any brokerage company and you can go for full service brokerage and you can leave it in their hands. If money is consideration for you, you can go with a discount brokerage. Here you won’t get all the services like experts suggestions etc; they don’t offer the assistance like full service brokerages.

If you have more money in your saving account. It is better to go and invest your money in share market, because your money can be increased by a substantial amount. You will get very less amount for saving account (i.e. up to 2.5 %). If you invest in the share market, you may get annual returns up to 10 % or more than that.

There is always risk in anything you do. You need to more concentrate on the share market, before buying shares of any company.

You need to understand some basics when you invest in share market .

1) Learn more about stocks and you need to know why companies issue them to us.

2) You need to know all the risks which you need to take in the future? It all depends on many factors like currency trading, foreign company investments, etc.

3) How much you are going to invest and how long you want to invest this money.

4) If you invest money in the share market, you can reduce your tax amount.

Note: Please take your Financial Adviser Suggestion before you take any decision.

Article by Kranthi Seo Consultant

Residential Status of the person in India

The Income Tax liability of a person is determined on the basis of his residential status. Under section 6 of Income Tax Act the rules to determine the residential status have been given. There are two classes of determinaries — Indian Residents and Non Resident Indians (NRIs). Other persons/HUF can be classified into residents and not ordinarily residents. It is necessary to determine the extent of income for every assessment year.

Residents and ordinarily residents

A person, who has been living in India in that year for 182 or more days, or stayed for 60 days or more in that year & 365 days or more in 4 proceedings years. [For Indian crew members & persons of Indian origin 182 days in place of 60 days] is considered as Resident in India. He has to pay income tax on his gross income whether it is earned in India or in abroad.

A person, who was resident in India for 2 years out of 10 previous years or 730 days or more during 7 years immediately the relevant previous year, is considered as an ordinarily resident. Also a Person, who lived in India for 365 days or more during the financial year, is considered as ordinarily resident in India.

Non-Residents

A person, who lived in India for less than 182 days, is considered as Non-Resident. He has to pay income tax on the income earned/collected in India. Non-Resident Indian husband/wife of FEMA is considered as the Person of Indian Origin  who has rights equal to Non-Resident Indian.

Not Ordinarily Resident

Any person/Hindu undivided family (H.U.F.) who is non-resident Indian for 2 years during 10 years or live in India for 729 days or less during 7 years immediately preceding the relevant previous year whether continuously or not is called not Ordinarily Resident in India.

Importance of PAN – Permanent Account Number

PAN or Permanent Account Number is a 10 digit code issued by the Income Tax department to every assessee. For specified transactions every person has to quote his or her permanent account number ( PAN ) compulsorily according to a new rule 114. Under new series Permanent Account Number or PAN is an all India unique number of 10 digits which remains unchanged even in case of change of your address, station or your assessing officer.

To widen the tax net the requirements to obtain and quote PAN has been amplified. For filing Income Tax returns 1/6 scheme has been abolished from 1st April 2006. Only those persons are required to file Income Tax returns whose income exceeds the maximum limit of taxable income.

To get a Permanent Account Number ( PAN ), According to section 139A the assesses have to make an application in form NO 49A in duplicate.

Why PAN (Permanent Account Number) is Necessary.

Every person earning total amount more than taxable limit should obtain a PAN.

A person should obtain a PAN if he is liable to file a return of income under section 139 (4A).

By employer, who is required to file a return of fringe benefits u/s 115WD.

A businessman or a professional should obtain a PAN, if his total sales/turnover or gross receipts are more than Rs.5 lakhs.

According to rule for the following transactions every person has to quote his PAN in all the documents:

When any immovable property valued Rs.5 lakhs or more is sold or purchased.

For the registration of a motor vehicle if required, during sale or purchase on demand of registration officer.

To open a bank account.

To apply for telephone/cellular phone connection.

To pay the bills of hotel and restaurants amounting more than Rs.25, 000 at a time.

For time Deposit account with banks or post offices more than Rs.50, 000.

To pay in cash for foreign travel amounting Rs.25, 000 or more at a time.

A deposit more than Rs.50, 000 in one day in any bank.

To purchase bank drafts, pay orders/bankers cheque on cash payment of more than

Rs.50, 000/- in one day.

For sale or purchase of securities on contract valued more than Rs.1 lakh according to section 2(h) of Securities Contracts (Regulating) Act, 1956.

On declaration under Form No. 60/61 any one can open a bank account or make any deposits in the bank or enter into other above mentioned transactions without having a PAN.

Quoting a wrong PAN (Permanent Account Number) will bring you a penalty of Rs. 10,000/- u/s 272B (2)