NIFTY july options per lot has changed to 50 shares from usual 75 shares per lot
Nifty 12may2021
Nifty 12may21 support 14700 resistance 15000 need a breakout
If Nifty breaks down next support 14500/14400
Nanaya Vikatan Tamil magazine published on 08/5/2021
Tax profits on equity
longtern capital gain tax if less than 1 lakh rupees no tax
https://www.vikatan.com/business/tax/share-and-equity-fund-for-tax-benefit
Taxation of Bonus shares and Stock split
Taxation of Bonus shares and Stock split
There are 2 types of Capital Gain taxes , 1) LTCG is Long Term Capital Gain 2) STCG is Short Term Capital Gain
LTCG is listed securities like shares , debentures ,bonds, etc in a recognized stock exchange sold holding more than
12 months is nil on the profits upto Rs 1 lakh and beyond Rs 1 lakh profit its 10% without indexation benefit.
STCG is same listed securities in a recognized stock exchange sold holding less than 12 months is 15% on the profit.
Holding period may vary for unlisted shares s 24 months and unlisted securities other than shares s 36 months.
BONUS SHARES are shares allotted for free to the shareholders and the shareholders dont pay anything to buy these
shares and your capital increases. For example if a person buys 100 shares of company on 1/8/2019 t Rs 100 each and on 5/2/2020
the company allots bonus shares in the ratio 1:1 so the total shares 100+100 is 200. On 2/9/2020 he sells all 200 shares at Rs 120 each.
LTCG on sale of original 100 shares which was bought more than 12 months (1/8/2019).
Cost price 100*100=Rs 10,000
Selling Price 100*120=Rs 12,000
Capital Gains =Rs 2,000
LTCG 10% = Rs 200
STCG on sale of 100 bonus shares which was allotted less than 12 months (5/2/2020)
Cost Price 100*0= Rs 0
Selling Price 100*120= Rs 12,000
Capital Gains = Rs 12,000
STCG 15% = Rs 1,800
So total tax LTCG is Rs 200 + STCG is Rs 1,800 = Rs 2,000
Here in Bonus shares company investment made Rs 10,000 and sold for Rs 24,000 , profit before tax is Rs 14,000, taxes paid Rs 2,000.
STOCK SPLIT is the same stock split into more shares where your capital remains same. For example if a person buys 100 shares of
a company on 1/8/2019 at Rs 100 each. On 5/2/2020 the company announces shares split in the ratio 1:1 , so total shares will be 100+100=200
but the stock price on the day was Rs 110 each will be divided by 2 where the stock will become Rs 55 each. On 2/9/2020 he sells all
200 shares at Rs 60 each.
LTCG on sale of 200 shares
Cost price 100*100 = Rs 10,000
Selling price 200*60 = Rs 12,000
Capital Gains =Rs 2,000
LTCG 10% = Rs 200.
Here in Stock split company investment Rs 10,000 and sold for Rs12,000, profits Rs 2,000 and taxes paid Rs 200
Tata Motors
Tata Motors cmp 287 looks good with support 256 for higher levels of 350+
risk management keeps you in peace
