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But there is a peculiar problem in 2nd example with profit harvesting which is in the 2nd year the target is (12,00,000=11,00,000+1,00,000) i.e. (for 2nd year 11,00,000*9.09%=1,00,000) the balance 0.91% = Rs. 10,010 Is a loss on my return (In the 1st example 10,000 is taxable amount) (But in the 2nd example there is loss of 10,010 in the Return on investment) Therefore, In 1st example (Return on investment = 20 % after 2 years) In the 2nd example (Return on investment = 19.09 % for 2 years) Then what is the use of profit Harvesting, the same 10,000 shows as loss in ROI instead of tax liability.
At loss harvesting why bandhu sold the shares of XYZ company shares loss at all and got taxed 15% on 20000. Simultaneously selling and buying the same stock was giving same value if you come to think about it. So why give tax? Along with the new STT, Brokerage, IGST etc..
@@alibabagroup3433one more thing I would like to add that the brokerage and transaction charges would be levied on 34 lac (sell 11 lac buy 11 lac and sell 12 lac) thus the net gain will be lesser 🥺🥺🥺
I have landed in a situation by following this method. Let me explain - 1. I have stock A in my account for over 1 years with 1 lakh profit. 2. I sold and bought stock A in same day in CNC mode on zerodha. 3. Now Zerodha has treated my transaction in step 2 as intraday transaction and didn't change stock A age or average bought price. 4. When I complaint to them, they said it is industry practice and I should have sold and bought in different days to be able to change its age and average stock price. 5. I feel cheated by them Not sure if it is Zerodha issue or misleading video. Anyways I lost money due to this
I have landed in a situation by following this method. Don't follow blindly, let me explain - 1. I have stock A in my account for over 1 years with 1 lakh profit. 2. I sold and bought stock A in same day in CNC mode on zerodha. 3. Now Zerodha has treated my transaction in step 2 as intraday transaction and didn't change stock A age or average bought price. 4. When I complaint to them, they said it is industry practice and I should have sold and bought in different days to be able to change its age and average stock price. 5. I feel cheated now
Nobody can become financially successful overnight. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking bold steps we need in other to reach our goals.
I think it's not always about fear, Sometimes realistic factors discourage people from reaching their goals in life. For instance, I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value
This is the problem! Most times people with little or no knowledge of the stock market try investing by themselves. It once happened to me, then I learned my lesson and contacted a US-based finance consultant by name *PRISCILLA DIANE AIVAZIAN* and everything changed. I started enjoying huge returns from my investment.
Totally blown away at the simplicity of explaining concepts. I am pretty these things may not look as simple had we read any article or spoken to conventional CAs. I am getting pushed towards joining your course.
Instead of aiming to reduce taxes, I aim to maximize profit. Profit maximization happens through STCG and not through LTCG. Tax is charged as a percentage of capital gain. Assume STCG gain is 20%. Tax on STCG is 15%. This means in terms of sell value the tax is only 3% i.e. (0.2*.0.15 = 0.3) of sell value. 3% price rise is nothing in stock market. If you are lucky you can make 5 to 15 % percent more profit by booking STCG instead of aiming for 1 year plus 1 day aim. The advantage comes only in LTCG of over 5 years where a stock can capture all prices spikes One has to decide depending trading skills and experience.
But may be it can give more returns in after 1 year then?? More profit + less tax ? You can't make more profit always as you said that ,aim to maximize profit , it very risky also....LTCG is much much better STCG
Great video, I've been interested in investing ever since I came across articles of people making up to $150,000 and more in this period, thanks for the video but is it really possible for a retail investor to achieve this in months?
Starting early is simply the best way of getting ahead to build wealth , investing remains a priority. I learnt from my last year's experience , I am able to build a suitable life beause I invested early ahead this time.
my 401k growth has been stagnant since the 2019. I wouldn't mind consulting the advisor who guides you, I really want to grow my retirement fund since I could retire in 3 years.
Is there anything like proof recession stock? I am 58 years and would like help in managing my retirement portfolio which is currently $1.25M...down from a high of $1.67M
@@Robertgriffinne Very true! I've been able to scale from $350K to $550K this red season because my FA figured out Defensive strategies to protect my portfolio and profit from this roller coaster market
@@Natalieneptune469 Glad to have stumbled on this conversation. Please can you leave the info of your investment-advisor here? I’m in dire need for one
@@Natalieneptune469 Thank you for this tip. it was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.
Ma'am we need more videos on taxes. Like types of taxes - Presumptive taxation. Different types of taxes on different types of business companies , like PVT LTD , LLP , corporation etc. Ma'am please.
Interesting , the stock market is currently experiencing a decline while bond yields are on the rise. However, there seems to be skepticism amongst investors regarding the Federal Reserve's plan to continue increasing interest rates until inflation is stabilized. As for myself, I find myself at a crossroads, uncertain whether to liquidate my $250,000 stock portfolio. I'm seeking advice on the best strategy to capitalize on this current bear market.
truly speaking, this is my first RU-vid Video which is more that 10 mins, which i watched continiously without skipping a second. very much knowledgeful. thanks Ma'am.
Just to add 1 point mam. This is in relation to profit harvesting. What happens is if this is done, cost of purchase increases and if in case share price falls due to some external factor, then this concept fails as every person waits for upward price movement but share price only falls leading to heavy losses. Then he averages and still price falls and high amt is locked. So not that easy. Personal opinion
I'M NEW TO BTC AND I'VE BEEN MAKING LOSSES TRYING TO MAKE PROFIT MYSELF IN TRADING...I THOUGHT TRADING ON DEMO ACCOUNT IS JUST LIKE TRADING THE REAL MARKET... CAN ANYONE HELP ME OUT OR AT LEAST ADVICE ME ON WHAT TO DO?
"If you can't explain it simply, you don't understand it well enough"- Albert Einstein......you have explained this complex subject of taxation with so much simplicity that I am beginning to like taxation as a subject.....after so many months of reading, the penny dropped now !!!! Excellent video.
Congratulations on getting covered by Indian Express !! I also watched your interview with Ankur Warikoo. I must salute some of your thoughts that you shared and how your courses were accepted by the people in remote areas where they don't have Internet bandwidth.
Rachana is a very good and great teacher.congratulations Rachana. You have cleared my 90 % doubts regarding LTCG / L & LTCG /L and deduction of expenses . I asked quetions to but no one answerd about deductions of expensws & overheads like Internet, office, Electric Bill, Rent, New purchase of TV Set/Laptop /Or Repairs.office employee etc.Today I am really happy.Thank you Rachana.
Thank you for all the knowledge ma'am. Please additionally let us know which ITR (1,2,3....) should be associated with which type of income (intraday, f&o, stgc, ltgc, dividend). Again thanks for enlightening us on such a great and feared topic.
If you only have dividend and/or interest income apart from salary, you can file ITR 1. If you have capital gains too, file ITR 2. If you have business income (whether f&o/intraday) too, file ITR 3.
Got a wholesome idea about the taxation clearly after this video...kudos to the effort in making this video and helping millions...This is a must one to be shared among friends and family...Once again thanks for the video on taxation...waiting for more to come...🎉🎉🎉
I respect the work you put into your videos. I find it truly baffling that all major crypto youtubers just look at pure wave and completely ignore the bigger narrative of why BTC is pumping and why the future outlook might not be as bullish as it seems.
@@bobbygunz9254 You can Visit her webpage when you lookup her name on the net. I have been with her since 2017 started small, grew and paid cash for a house.
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Great video ma'am! Always a wealth of knowledge! Appreciate all that you do!! :) For the F&O portion will I need to get an audit done if I am in a profit or loss? If the F&O is treated as business income do I need a GST registration done? What about the concept of turnover - Is it only the turnover in my F&O portion or is the turnover calculated on my entire income streams? An in depth video for F&O taxation will be very helpful!
22:34 I would like to add easy trick here. As you know how volatile prices of shares can be on day to day basis. So for tax harvesting I suggest you to have one demat account with zerodha and one with other like Paytm money. So that you can book profit or loss and buy immediately in other account. This doesn’t amounts to intraday.
Amazing! I personally completed all ur courses (except F&O) way back in yr 2020.. For few months I even enrolled as professional investor as a member. Bt now a days I hardly watch ur videos related to equity investments, as I added lotta knowledge after ur courses regarding how actual professional investment works in Equity. Bt regarding the finer details of Financials & Taxations, I still watch ur Videos keenly. Once CA is life time CA..Thanx, pls keep on sharing such videos..
@@divyatejas ok but i learnt on my own and still learning. Trading is not something that mentor can make you excel. At least 99% of youtuber dont understand these concepts themselves like short covering. But you may avoid some common pitfalls Personally I am an Actuary and FRM L1 helped me to gain proper concept on F and O rather than the so called youtube concepts
Thank you Ma'am for the wonderful explanation as always :). I tried sell and buy immediately in Zerodha. In Zerodha, if we sell and buy immediately, the transaction is considered as intraday. Do we have to take any extra steps here to take the loss into long /shor term instead of intraday or am i missing something here.
Next day if price is lower then it is ok But if there is sharp rise in stock price then problematic.. Then you will have to wait till price come to your selling level.. Requires some trading skills to do harvesting
When it comes to the world of investing, most people don’t know where to start. Fortunately, great investors of the past and present can provide us with guidance..😌🙌
Hello Rachana, This video was really very informative. I have a couple of questions. You have talked about the "benefits of the basic exemption limit" of 2.5L apart from 1L additional exemption. For salaried employees investing in Equity share/MF, is Rs 2.5L basic exemption applicable for LTCG or STCG? In which section of tax rules, it is defined? Please do answer....
Yeah that's right I think the best way is to invest with a professional, at least it saves the trauma of too much losses This just surprised me because I also invest with Mrs Juliaa
I had a bad experience investing on my own until I met Juliaa ,I got to change a couple of things and my kid now goes to a great school. You only have to stick with his strategies
Pay tax of 10000 and get 190000 now put that 1.9l in fd 7% and get 26600 in 2 years so even after paying 10000 tax u get 2.166 lakh which is 16600 more .😂😂😂. So always reap the benefits of ltcg in stock market dont wait
It should not be a big issue if you are immediately buying at the same price in which you are selling. But as the amount goes higher, other charges such as brokerage keep getting added.
Nice video very engaging from the beginning to the END I'm new to Crypto trade and I have been making huge losses but recently see alot of people earning from it.can someone please tell me what I'm doing wrong
I should have watched this 5 years back, I have never thought of selling my shares and buying again as per your suggestion. I truly like and respect your knowledge and explanation skills. Keep sharing mam...
Instead of loss harvesting one can keep scrapping the profits, i.e after one year sell half shares and reinvest (either same shares or different). After two years sell remaining half shares. Effect will be the same. And again make your position in good shares by buying in dips.
Thank you for such a lucid explanation of tax incidence on the short / term long term stock market investments. I have 2 questions if you can help : 1. Can dividend income be offset against Long/Short term capital losses in an Individual / HUF account? 2. How can I save taxes (LTCG) on sale of commercial property besides buying government bonds or buying residential property? Are there any other avenues? Thanks!
👏👏 Simple and well explained. BUT 80 C deduction is unnecessarily brought in, as it is deductible against income other than Capital ( both Short term and long term) gains. In the same way, deductions under Chapter VI are available except against capital gains . Therefore dragging 80 C doesn’t appear to be apt in this context.
No words to explain your efforts to educate us with different types of financial knowledge and make our life more simple and stress free. Keep us provided your knowledge and guidance. Thanks a lot!
Rachna ji beautiful explanation. Im learning CA from your 🙂 Can you please create a video on how to start a company and trade in F&O in company's name so tax paid is less
A quick question: Salary : 1Cr + LTCG Sell of Stocks : 3 lakhs What will be the taxation? Wanted to understan surcharge, exemptions and cess percentage
Great sequencing of finer points which is missing in many videos in the market . I was in search for exactly this way of presentation for long . At last Today I got your platform . Thank you very much
i am a CA INTER student...from 2021 i am following your youtube channel..and was shocked about your knowledge ..now in 2023 i register myself in CA INTER..now i have understood how you achive this kind of knowledge
A small catch in selling and buying stocks immediately for tax harvesting. It will be treated as intraday trade. One has to wait atleast a day between selling and buying back the stock. Any fluctuation in the stock price during this time is bearable by the investor. So, immediately = 1 day.
आपली माहिती देण्याची शैली खुप ओघवती व खिळवून ठेवणारी तसेच सहज समजणारी आहे...कपडे व मागील भिंत रंग संगती उत्तम आहे. धन्यवाद..जमली का मला पुणेरी मराठी 🤣🤣
Regarding loss harvesting . The chandu sell and buy the shares immediately.then the buying price will also decrease. If both book the profit next year then there will be difference in profit amount for both persons.
Multiple questions 1)How do I know how much profit I have made. 2) I don't have a track of dividends received 3) What is the basic tax benefit for men and women 4) how do I file my tax
Plesae correct a mistake- In case someone sells shares and buys shares immedately just to book loss/profit, this will be treated as speculation as there is no delivery of shares and its a intra-day trade. Please advise viewers to sell after holding for 366 days and buy immediate next day. Also, it is important to realize that this need will spread the holding over 2 Financial Years. Thanks.
Dear Rachna, you have cleared all the concepts of taxation on all type of trading in very simple way. I have adopted the strategy of harvesting the loss and profit and saved the STCG and LTGC during this FY.
Time 22:36 tax Harvesting. Question: if we sell and buy immediately within a year is not the transaction classified as short term capital gains of 1lakh and taxed @15%?
Can you send one video on Sovereign gold bond for long term protection, considering last twenty years depreciating Rs (4.2 percent), and appreciating gold in dollars for last twenty years (4.5 percent), and benefits of long term taxation on SGB
Zabardast is teh concept of profit harvesting, I was doing it from long time, but never realized it, until i watched this video... super madam ur explanation is super easy and very informative.
But there is a peculiar problem in 2nd example with profit harvesting which is in the 2nd year the target is (12,00,000=11,00,000+1,00,000) i.e. (for 2nd year 11,00,000*9.09%=1,00,000) the balance 0.91% = Rs. 10,010 Is a loss on my return (In the 1st example 10,000 is taxable amount) (But in the 2nd example there is loss of 10,010 in the Return on investment) Therefore, In 1st example (Return on investment = 20 % after 2 years) In the 2nd example (Return on investment = 19.09 % for 2 years) Then what is the use of profit Harvesting, the same 10,000 shows as loss in ROI instead of tax liability.
In F&O business gains one CANNOT deduct STT as an expense for income tax payable! Let's give the reason. STT is a TAX, and payment for it cannot be used to reduce another tax namely INCOME TAX! Finance ministry has also issued a clarification on this in recent budget.
Ty for videos...Shrikant here. I am sharing with one of the MCom topper and CA professionals... and with n number of friends. n is not the Fibonacci but natural number.
It's awesome and feeling much like attending a class of Prof. RR. A query, all the losses, gains, setting off, brokerages, etc. how do we and where do we file / put in Income Tax Filing? Didn't find this option when I filed it this year. I'm ITR-1 person. Thanks Prof. RR.
for tax harvesting if you sell stock and buy immediately same stock same day , transcation is defined as speculation ( day trading ) and you cannot avail LTCG or STCG. I've experienced this . Your are expert & CA - now I do not buy and sell same day , i keep a gap of one day
I hope you won't mind , one more quetion. In my personal case when there is no other income from salary or Business. Will income from (LTCG /L OR STCG/) Share market will be treated as Business income or will be treated as LTCG/STCG Income and accordingly I.Tax rate will be applied.
Wonderful Video ! I don't know if this topic will have enough demand to be learnt- but, what about MCX/currency trading income ? (Gold,crude oil, natural gas,etc). Would appreciate if you cover it in future. Thank you for being an awesome teacher. 😊
@CARachnaRanade , in case tax harvesting , If you sell shares and then buy Immediately then it will be Intra day , you have not booked any profit or loss. You have to buy next day at same price.
When I research about it, I am coming across terms like wash sale if we sell and buy stock on the same day. If we do wash sale, loss harvesting will not be applicable. Also Zerodha says, if we buy and sell on same day, it will be automatically considered as intra day. They ask us to wait for atleast 2 days before rebuying the stocks
