Taxation Simplified for Traders

Taxation Simplified for Traders

Taxation Simplified for Traders: It’s Time To File Your Tax Return Taxation in leu of gains from trading or investing in shares is somewhat complex. SAS Online has made an attempt to simplify it for the taxpayers. Before you can figure out how much to shell off as the tax you must first decide whether you are a trader or an investor. Trader or Investor If you buy stocks with an intention to earn from dividends then you are an investor. A trader buys stocks to profit from price rises. Long-Term &Short-Term Gain If a listed security is held for less than 12 months and then sold, the consequent gain/loss is considered to be short-term capital gain/loss. If the holding period is above 12 months, long-term capital gain/loss arises. Speculative and Business Income Intra-day trading or same day buying and selling of any share is interpreted as speculation income.It involves no actual deliveries of stocks. Trader can gain or lose. Loss can only be offset against speculative gains. Income from trading F&O(futures and options), intraday as also overnight, on all the exchanges is considered as non-speculative business income. How to Calculate Turnover Turnover refers to the profits and losses that are incurred after the settlement of the trading account. In a financial year, if your turnover is over Rs.1 crore, then your books of accounts mandatorily have to be audited  Audit Requirements An audit is mandatory if you have business income and the yearly business turnover crosses Rs. 1 crore. For digital transactions, this limit is Rs 2 crores. All equity transactions are digital. For equity traders, an audit is mandatory(sec...
How to survive the current market downturn?

How to survive the current market downturn?

  The situation in the market is grim. Comparisons with 2008, and even 2000, have begun. Older investors, who have weathered one of those massive downturns, are likely to be better prepared emotionally. Younger investors, on the other hand, who have not witnessed such a brutal downturn before, are likely to find it more difficult to deal with. In this story, we shall discuss a few strategies that can help investors survive this severe market downturn. The health scare: This story is being written on April 6, and there is no relief from the spate of bad news. The number of cases and the death toll—4,314 and 118 respectively—continue to rise inexorably. The situation is grimmer in countries like the US, Spain, and Italy. In India, so far, the number of cases and deaths is smaller, for our population size. But uncertainty looms. We do not know whether the lock down will end in the middle of April or will be extended. The risk of a spurt in the number of cases once the lock down ends also looms. It could well force the authorities to impose another lock down.   Economic slump: On the economic front, GDP growth projections are being continuously revised downward. Fitch Ratings, whose earlier projection said India would grow at 5.1 per cent, has now revised it to a 30-year low of 2 per cent. India is primarily a consumption-driven economy. Private consumption accounts for 60 per cent of GDP. The disruption in economic activity will, in the months that follow, translate into salary cuts and job losses, which will, in turn, affect private consumption...

What is a Bracket Order (BO) and how to place trigger based Bracket Order?

In today’s time of volatile and ever changing dynamic markets how can a trader capture the required move of a stock and at the same time manage his Risk and book profits at required levels well answer for the question is Bracket Order. Well now you might be thinking, what is Bracket Order? What does it do? How will it benefit me? is there any leverage benefits ? Is it the right product for me? How should I use it? Let’s try to figure out those questions one by one What is Bracket Order? It is an intraday product/order type which provides enhanced protection and also can ensure that none of your profitable trades turns into a loss! Sounds great right now let’s see how it works What does Bracket Order Do? Well it’s a type of order where we can Buy/Sell any asset along with target (take profit)/exit and a stop loss, as soon as the main order is executed system will place two more orders (target and stop loss).When one of the two orders (target or stop loss) gets executed ,the other order will get cancelled automatically . How will it benefit me? In a situation where we won’t be available in front of the trading system to track the price movements because of any reason so in that case how will we manage ?let’s see for example a stock(let’s say X) is trading at Rs 100/- and as per our analysis done on previous day after market we have decided to buy X at 103 with stop loss at 99 and target of 110 next day...

What Are the Advantages of Using Online Trading Platforms?

Are you still trading offline? Do you often find yourself searching for share broker near me or discount stock broker near me? Traditionally, trading meant finding stock broker companies or share market brokers, consulting them and investing your money after doing so. Every time, you had to update your investment, you had to contact the broker and wait for final modifications. Such a hassle, right? Today, we are living in the age of next-gen technology, which offers us a variety of online trading options with seamless trading experience. You only have to search for an online discount brokerage firm near me, and you can start investing. However, due to lack of knowledge and lower trust in online platforms, many investors have an aversion towards online trading platforms. Hence, to clear the air of confusion, let’s first explore what online trading is and then discuss the benefits of using these platforms. Online trading is similar to your broker, just that it is not an actual person. Online trading eliminates the need of a broker as you can directly check financial instruments through the online platform, make an investment decision, and invest your money. You can purchase or sell stocks, bonds, mutual funds, etc.  Below, we have explained some of the benefits of online trading platforms. Read more to understand why online trading can help you save money spent. Benefits of Online Trading platform When compared to the offline method or the traditional form of trading, online trading is increasingly gaining popularity due to its unique benefits. From getting real-time access to information to receiving 24*7 guidance, online trading leads to high...
Best Markets for Beginner Traders

Best Markets for Beginner Traders

As a beginner interested in trading, you may be confused about the huge market options in front of you. There are many different trading markets that even seasoned traders are yet to explore. So, when you are just starting out as a new trader, it is best to choose a few trading markets, observe and analyze them, and then make prudent investment options.     A Guide to Beginners: Market Options for Trading There are several options for online trading for beginners in India. You can easily open a trading account online on any of these platforms and start your trading experience. To get you started, here are some markets for trading for beginners. The Evergreen Stock Markets Stock market trading is one of the most common forms of trading platforms in India. You can see many beginners starting with the stock market and then branching out to different versions of it. In stock trading in India, you buy and sell shares of various companies listed on the market. You have the option of investing in big global brands to new startups. You are in no dearth of investment options in stock trading. It is a pretty straightforward system to trade in stock markets, although there are a lot of instruments available on the platforms for trading options. It is best to learn the basics of stock trading for beginners and watch the market movements of a few selected stocks before you invest. In India, you have Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), in which all the Indian stock trading options are listed. For SAS online...