New issue of Sovereign Gold Bond starts today🏅

I've been asked the tax implications so many times, so here you go.

Here's a very simple cheatsheet - A thread 🧵

Retweet for karma 😇
🏅 Buy in primary issue, hold till maturity:
No tax on maturity

🏅 Buy in primary issue, sell in secondary market:
Capital gains tax applies

🏅 Buy in secondary market, hold till maturity:
No tax on maturity
🏅 Buy in secondary market, sell in secondary market:
Capital gains tax applies

Note that Interest is always taxable at slab rates.

#SGB #investment #incometax
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More from @manansmehta5

12 Jan
How are investments in REITs taxed in India? 🏢

With multiple REITs available now in India (Embassy, Mindspace, Brookfield), you really should understand the tax implications on investing in REITs.

A Thread 🧵 Image
1/ Distributions from REIT:

A REIT can distribute money to you in the following forms:

•Dividend
•Interest
•Amortization of debt
•Any combination of the above
2/ The REIT will provide you a Form 64B at the end of the year. All you have to do is pick up these numbers and plug them into your ITR.
Read 11 tweets
10 Oct 21
Let's introduce you to the crypto world. And where to get started. I'm going to use stock analogies here.

I've spent over 100 hours dissecting the basics.

Here's a Crypto investing 101. A thread 🧵

Like and Retweet 🚀
1/ Indian exchanges:

Think of crypto exchanges like WazirX, Zebpay and CoinDCX as a broker-cum-exchange. I like to say this is Zerodha + NSE.

They allow you to purchase cryptocurrency on the exchange as well as act as a store of your cryptocurrencies.
All your crypto currencies are stored on a Wallet with these exchanges. There are considered centralized exchanges.

These exchanges allow you to invest in all your major cryptocurrencies - Bitcoin, Ether, Dogecoin, ADA, Matic, etc

Most transactions are denominated in INR
Read 20 tweets
8 Oct 21
I've been thinking about this for a while.

Is there a way we get around the fact that Bitcoin DOES NOT work in isolation? Bitcoin is (and probably always will be) valued in terms of another currency.

#Bitcoin #Crypto #Blockchain

1/n Image
So you have an alternative to Gold - great! But is that all that Bitcoin can be?

Bitcoin does not seem like it can ever be used as a medium of exchange. For multiple reasons:

2/n
1. Governments are unlikely to allow this.
2. How do you value something in Bitcoin terms if the value keeps fluctuating? A currency needs to be stable(ish)

3/n
Read 7 tweets
6 Oct 21
Been reading a ton about the Pandora Papers. Here's the thing - what rich people, politicians and cricketers may be doing might not be illegal.

Here's a Pandora Papers 101 📓

#PandoraPapers #tax Image
1/ There are at least 380 persons of Indian nationality in the Pandora Papers.

These documents relate to the ultimate ownership of assets ‘settled’ (or placed) in private offshore trusts.

Corporate mumbo jumbo is cut out. This looks at who is the real owner of an asset.
2/ Ugh. What's this trust you keep speaking of?

Without getting into the legal mumbo jumbo of it, a trustee (a third party) holds assets on behalf of individuals that are to benefit from it (beneficiaries).
Read 27 tweets
1 Oct 21
National Pension Scheme (NPS) is the new hot deduction everyone is talking about.

We've spent a lot of time dissecting #NPS. Here's everything you need to know.

A Thread 🧵

Like and RT 🚀

#NationalPensionScheme #Investing #PersonalFinance
1/ First up, here's a detailed article on NPS and why it might be good idea to start investing in an NPS:

thegalacticadvisors.com/post/national-…
2/ Let’s focus on the deduction aspect here ✂️

Deduction under 80CCD is available upto:

• Employed person:

Can contribute upto 10% of salary to NPS. This 10% is in addition to the INR 1,50,000 limit under Section 80C.
Read 6 tweets
30 Sep 21
Accidentally made Intra-day trades? 📉

This can happen. Here's how to deal with it from a tax perspective.

A Thread 🧵 Image
1/ First up, why does this happen?

- You might think your stock broking app will just sell your old shares. This happens most times.

But if you purchase and sell the same scrip on the same day, it will be treated as an intra day transaction.
2/ What's the tax treatment?

Intra day transactions are treated as speculative business for tax purposes.

Tax treatment is NOT the same as capital gains.
Read 11 tweets

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