Blog by PriyaSahu

All dividends from stocks and mutual funds are taxable in India. They are added to your annual income and taxed according to your personal income tax slab. Earlier, dividends were tax-free in the hands of investors, but now they are fully taxable. If you receive more than ₹5,000 as dividen...

Dividends received from mutual funds are taxable in India. The tax treatment depends on the type of mutual fund. For equity mutual funds, dividends are subject to a 10% Dividend Distribution Tax (DDT) before being distributed to investors. For debt mutual funds, the tax treatment is simila...

Dividends received from stock investments are taxable in India. These dividends are included in your total income and taxed as per your applicable income tax rate. If your total dividend income exceeds ₹5,000 in a financial year, the company deducts 10% TDS before paying the dividends. How...

Dividends are taxable in India, and the tax treatment depends on the type of dividend and your total income. For equity dividends (from stocks or equity mutual funds), the dividend is taxed at the investor's income tax rate. For debt dividends, the tax is also applied according to the inco...

ETF dividends are subject to different tax treatments depending on whether the ETF is equity-based or debt-based. For equity-based ETFs, there is no tax on dividends at the investor level, as the company distributing the dividend pays a dividend distribution tax (DDT). However, for debt-ba...

Mutual funds held in retirement accounts such as NPS (National Pension System), PPF (Public Provident Fund), and EPF (Employees' Provident Fund) enjoy tax exemptions. The capital gains, dividend income, and interest income generated from these funds are not taxed as long as the funds are h...

Profits from options and futures trading are classified as business income by the Income Tax Department. This means that the profits are taxable according to the income tax slabs that apply to your total income. Whether the profits are short-term or long-term doesn't matter because options and futur...

Short-term capital gains (STCG) tax on stock market profits is charged when you sell stocks within one year of buying them. For listed stocks in India, the tax rate is 15%. For unlisted stocks, the tax rate is 30%. This means if you sell your stocks within a year and make a profit, you wil...

In India, stock buybacks are subject to tax treatment based on the nature of the buyback. For individual investors, the proceeds from a buyback are treated as capital gains. If the shares are bought back within a year of purchase, it is classified as short-term capital gains (STCG) and tax...

In India, stock options and equity-based compensation are taxed at two main stages: at the time of exercise and at the time of sale. When employees exercise stock options, they are required to pay tax on the difference between the exercise price and the market price of the shares on the ex...

In India, stock options are taxed at the time of exercise and when they are sold. When you exercise stock options (ESOPs), you may have to pay tax on the difference between the exercise price and the market value at the time of exercise. Later, when you sell the shares, any profit you make...

The tax treatment of stock splits and reverse stock splits does not immediately affect your taxes. In a stock split, you get more shares, but the total value of your investment stays the same. Similarly, in a reverse stock split, the company reduces the number of shares, but again, the tot...

A Systematic Withdrawal Plan (SWP) is a great option for investors who want to regularly withdraw money from their mutual fund investments. While SWPs provide a reliable income stream, understanding the tax treatment of withdrawals is crucial to avoid surprises. In this blog, we’ll break d...

The Three White Soldiers is a bullish pattern in trading that appears after a downtrend. It consists of three long green (or white) candles in a row. Each candle opens within the body of the previous one and closes higher. This pattern shows strong buying pressure and usually means that th...

The time frame for mutual fund redemption processing in India usually takes 1 to 3 working days. After you place a redemption request, your money is transferred to your bank account based on the type of mutual fund you have. Equity mutual funds generally take 3 working days (T+3), while debt an...

Trend-following strategy is a trading approach where you invest in a stock, commodity, or asset only when its price is moving in one clear direction – either upward or downward. You follow the ongoing trend instead of predicting market reversals. The goal is to ride the trend as long as it last...

The Treynor ratio, also known as the reward-to-volatility ratio, is a performance metric used to evaluate how well an investment compensates investors for the level of systematic risk (market risk) it exposes them to. The Treynor ratio is calculated using the following formula:

Treynor...

The Treynor ratio is a measure used to evaluate the performance of a mutual fund relative to the risk it takes on. Unlike other performance ratios, the Treynor ratio focuses specifically on systematic risk, or market risk, rather than total risk. This makes it a useful tool for assessing h...

The Triple Exponential Moving Average (TEMA) is a type of moving average that is calculated using three different smoothing techniques. The TEMA attempts to provide a more responsive and less lagging average compared to traditional moving averages like the Simple Moving Average (SMA) or Ex...