PCS CAPITAL

What is Capital Gain Bond? Capital Gain Bonds are bonds notified under Sec. 54EC of the Income Tax Act’ 1961 by investing in which the profits arising from the sale of a Long Term Capital Asset (Land/Building or both) would be exempt from tax subject to certain conditions. What constitutes Capital Gains? Under Section 54EC, capital gains are those that arise from the transfer of long term capital asset being land/building or both. Are the benefits under this section applicable for short term gains?  No. Only Long Term Capital Gains qualify under this scheme. What qualifies as Long term Capital Assets?  Land and Buildings qualify as long-term capital asset if held for more than 24 months. Is there a time limit of investment in these bonds? The gains have to be invested in the bonds within 6 months of such realisation or before the filing of IT returns. Such benefits cannot be split into two financial years What is the tenure of these bonds? The bonds are redeemable after 5...

 A small   Q & A on Term Insurance What is Term Insurance? Term insurance is a legal agreement between the insured (you) and the insurer (insurance companies) where death benefit is provided to the nominee if the life insured dies during policy tenure. Normally a term insurance provides a substantial life insurance cover at an affordable premium. Why is term insurance important? -A term insurance provides substantial life insurance cover at an affordable premium -The sum assured helps your family members to live the same standard of living in your absence. -It gives you peace of mind by ensuring your family will have financial support even when you are not there. What are the benefits of term life insurance? -Term insurance plans provide a substantial life insurance cover at affordable premiums -Premium paid towards term insurance provides tax benefits under section 80C up to Rs. 1.5 lacs. -The sum assured your family receives is also tax free. How much cover should o...

  What comes first? Many investors come to me asking for schemes where they can get good returns. But I don't start with investments. I start by asking them if they have taken health insurance and life insurance. Mostly, their answer is no. Even if they have taken, the coverage amount is low. It is then, that I tell them they should first buy/increase their health and life insurance cover. The investment comes later. They say they first want to invest and later on spend on insurance. They consider insurance as an expense. This is so wrong. In fact, money spent on term insurance and health insurance may be the best investment. It safeguards the family if an unfortunate event were to happen. During a crisis related to health, all your savings could be wiped off without sufficient insurance and in case of death, the family could suffer greatly due to loss of income. Yes, dealing in investment is my main work but I know; that without proper insurance, investments may not last long. Do ...

Any action taken by the company that creates an impact on issued securities is known as corporate action. Dividend, stock split, bonus and rights issue are examples of corporate action. Typically, corporate actions are approved by the company’s shareholders and Board of Directors.  Dividend A dividend is a part of the profit distributed by the company to its shareholders. Distribution percentage (dividend payout ratio) is decided by the company management depending on capital requirement, cost and availability of alternative funds, liquidity, etc. For example, if a company with 10 crore outstanding shares has a net profit of Rs. 50 crore and decides to distribute 40% of its profits to shareholders, then per share dividend will be Rs. 50,00,00,000* 40%/10,00,00,000 = Rs. 2 A dividend is paid on the face value of the share and sometimes declared in percentage form. If a company share price is Rs. 500, face value of the share is Rs. 2 and the company declares a dividend of 250%, then ...