Wednesday 12 September 2012

Remember, before investing in shares


The Ten Most Important Points about Share Investing

When you decide to invest in shares, making the right decisions is crucial: The ten most important points you need to know about share investing are listed below.
  1. You’re not buying shares; you’re buying a company. think in this way.
  2. The reason of buying a share is because the company is making a profit if its not so then its speculating.
  3. In some cases, such as a severe bear market, shares aren’t a good investment at all.
  4. A share’s price is dependent on the company, Company dependent on its environment, which includes its customer base, its industry, the general economy, and politics. so always judge share's future through external factors then internal factors.
  5. Your common sense and logic will be more than important of advice of any investment expert.
  6. Always have well-reasoned answers to questions such as ‘Why are you investing in shares?’ and ‘Why are you investing in a particular share?’
  7. If you have no idea about the prospects of a company, and sometimes even if you think you do, always use stop-loss orders.
  8. Even if your philosophy is ‘buy and hold for the long term’, continue to monitor your shares and consider selling them if they’re not appreciating or if general economic conditions have changed.

    Remember Formulas are made to check past data and analysis purpose... they can not give you a full idea about future, it is so, then its just, estimate. but external factors in reality controls the company. 
    Good luck .... happy investing

    Vikash k singh
    Article assistance

Tuesday 11 September 2012

Set off, or Carry forward of losses.

Within head - Intra head - adjustment.
As per section 70 -

1. where net results for any assessment year, is loss under any head except CG, then such loss can be set off against any source of income.

2. Loss of Short Term CG can be set off against Long as well as short term capital gain.

3. Loss of Long term CG can be adjusted against long term capital loss only.

4. Speculative loss with speculative profit only.

5. Loss of exempt income will not be entertained.

INTER HEAD - ADJUSTMENT.
Section 71 -

1.where the net results of any head except CG, is loss, and assesses have no income under the head CG, can be set off against any head of income.

2. where the net results of any head except CG, is loss, and assesses have income under the head CG,
can be set off against any head of income including CG.

3. PGBP lossess cannot be set off against Salary income.

4. CG loss can not be set off against any other head.

5. HP loss can be set off against any head of income.

NOTE :
CG - CAPITAL GAIN
PGBP - PROFIT & GAINS FROM BUSINESS OR PROFESSION
HP - HOUSE PROPERTY