What is the tax legal responsibility for share transfers?
2 min read
I’m planning an off-market (paper-slip ) switch of fairness shares from one among my demat accounts to a different. The shares within the outdated account qualify for long run capital positive factors. What would be the taxation implication in case of such a switch or if I promote the shares inside a month of the switch?
—Navalkishor Kedia
There will probably be no capital achieve tax in your case as there is no such thing as a shopping for and promoting transaction concerned in such switch. The query of capital positive factors would come when you’ve any realized achieve or loss. In the case of listed fairness shares, the brief time period capital achieve is relevant as much as one 12 months and the long run capital achieve after one 12 months of holding. It is for unlisted shares the place the long run capital achieve is relevant after three years.
My 35-year-old daughter needs to take a position ₹7 lakh in mutual funds for a interval of 3-5 years. How ought to she go about with it?
—Name withheld on request
In the current state of affairs, it might be higher to take a position ₹7 lakh over 2 to three months. Since her time horizon is 3 to five years investing the whole quantity in fairness is probably not the most suitable choice in our view. One will need to have a minimal horizon of 5 years to put money into fairness.
Hence, she will contemplate dividing her funding into fairness funds and balanced benefit funds (BAF). his will assist her to cut back the danger and volatility in case she wants some invested quantity after 4 or 4 years. Also inside the fairness mutual funds, it might be good to contemplate large-cap oriented funds because the time horizon is round 5 years. Mid-cap and Small-cap funds might carry increased danger in comparison with large-cap contemplating the time horizon.
Following are the funds during which she will make investments:
UTI Nifty Index Fund (20%), Canara Robeco Bluechip Fund (20%), ICICI Prudential Balanced Advantage Fund (15%), HDFC Balanced Advantage Fund (15%), Parag Parikh Flexicap Fund (15%), and SBI Large & Mid Cap Fund (15%).
She can make investments the whole quantity in 2 to 4 tranches inside the coming three months and provides adequate time to the market to ship outcomes for her funding.
Harshad Chetanwala is co-founder at MyWealthGrowth.com.
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