Capital Gains Tax | wealthymatters

Open Offer Or Open Market Sales?

August 2, 2013 Leave a comment

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If you tender your shares in an open offer, if you have held them for over a year , you will have to pay 20% capital gains tax with indexation benefit, and 10% tax without indexation .If you tender shares within a year, you will have to pay income tax as per your tax slab.

If shares are sold in the open market after a year, they do not attract any capital gains tax, but if they are sold before a year, they attract 10% capital gains tax.Shares sold via the bourses however are subject to the STT.

Filed under Paper Assets, Tool Kit Tagged with Capital Gains Tax, income tax, indexation, investing in shares, open market sales, open offer, postaday, STT securities transaction tax

How Well Would You Have Done if You Had All Your Savings In Gold?

December 27, 2012 3 Comments

wealthymatters.com Today financial planners and daily wage earners speak of ” investing” in gold.In fact,given the dream run of gold in the last decade,most people can’t see past gold.Never mind that between last Diwali and this one there was no substantial increase in the price of the metal and that there was a fall in price in between and then it struggled to rise for a while.

There is no denying that in the dark days after the stock crash of 2008 and the poor economy thereafter, gold provided good comfort for all of us who worried about our financial health.And the fact that gold price rose fantastically in uncertain times was the icing on the cake.

Also gold has helped us hedge against inflation.Here is the link to an older post.

Gold also does superbly well when the equity markets and debt markets are giving negative real returns.

So should you just have all your savings and investments in gold?Far from it!Aside from the wealth tax you might be forced to pay every year on an asset that will give no returns till it is sold, at which point it might attract capital gains tax,keeping your money in gold over the last three decades wouldn’t have given you stellar returns.Check out the chart here:Long Term Returns from Gold Vs SENSEX While gold keeps up with inflation,just buying and holding it for long is unlikely to make you rich any time soon.So be certain to enjoy the touch and feel and beauty of your gold.