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 charge tax on income

To know the procedure for charging tax on income, one should be familiar with the following:

Annual Tax - Income-tax is an annual tax on income.

Tax rate of assessment year - Income of previous year is chargeable to tax in the next following assessment year at the tax rates applicable for the assessment year. This rule is, however, subject to some exceptions.

Rates fixed by Finance Act - Tax rates are fixed by the annual Finance Act and not by the Income-tax Act. For instance, tax rates for the assessment year 2008-09 are fixed by the Finance Act, 2008. If, however, on the first day of April of the assessment year, the new Finance Bill has not been placed on the statute book, the provisions in force in the preceding assessment year or the provisions proposed in the Finance Bill before Parliament, whichever is more beneficial to the assessee, will apply until he new provisions become effective.

Tax on Person - Tax is charged on every person.

Tax on Total income – Tax is levied on the “total income” of every assessee computed in accordance with the provisions of the Act.

What is regarded as “income” under the Income-tax Act

The definition of the term “income” in section 2(24) is inclusive and not exhaustive. Therefore, the term “income” not only includes those things which are included in section 2(24) but also includes such things which the term signifies, according to its general and natural meaning. Before discussing the definition of income given in section 2(24), it is imperative to know meaning of “income” as generally understood.

Note: Please take your financial  experts advice before following this Article.

India Finance Minister Pranab Mukherjee presents his annual budget on Friday for the year 2010-2011. Pranab has got the chance to present the budget after a long pause. The last time he presented the budget was at the time of Indira Gandhi.

Following are the highlights of the budget 2010-2011 being presented by Pranab Mukherjee in the Parliament.

Finance Minister says Economy now in far better position than a year ago Need to review stimulus and public spending Challenge to return to 9% growth, then double-digit Final FY10 GDP figure may be higher than estimate of 7.2%

Finance Minister says that we need to move towards fiscal consolidation

Fiscal deficit seen at 6.9 % of GDP in 2009/10

Fiscal deficit seen at 5.5 % of GDP in 2010/11 (Reuters poll 5.6 pct)

Fiscal deficit seen at 4.8 % of GDP in 2011/12, 4.1 % in 2012/13

Total expenditure in 2010/11 11.87 trillion rupees (USD 256.75 billion)
2009/10 revised estimate for tax collection 7.47 trillion rupees (USD 161.58 billion)

Roadmap within six months to cut public debt

Government will be in a position to implement direct tax code from April 2011

Aims to introduce GST in April 2011

Since December have been signs food prices pressures transmitting to non-food items.

Government to simplify FDI policy

New Personal income tax slabs for the year 2010 -2011

Finance Minister Pranab Mukherjee also raised personal income tax slabs. Details are as follows:

Taxable income (in Rs) Rate (%)
Up to 160,000 – Nil
160,001 – 500,000 -10 %
500,001 – 800,000 – 20 %
800,001 upwards – 30 %