Author: kanchan

What is ‘Penny Stock’

Hi, Q.1) What is 'Penny Stock' Penny stocks are those that trade at a very low price, have very low market capitalisation, are mostly illiquid, and are usually listed on a smaller exchange. Penny stocks in the Indian stock market can have prices below Rs 10. These stocks are very speculative in nature and are considered highly risky because of lack of liquidity, smaller number of shareholders, large bid-ask spreads and limited disclosure of information. Penny stocks can be considered viable investments in certain circumstances. Q.2) Is It Good To Invest In Penny Stocks In India? Penny stocks are quite popular with small investors because of their potential for huge gains. The gains may be in the range of 300% to 500% or even higher. Even if you have…

What are the Tax Liability on Donations and a Certificate

Hi friends! Q. What are the Tax Liability on Donations and a Certificate A. On 26th March, 2021 CBDT, has notified (wide notification no 19/2021-Income Tax) that a Statement of Donation shall have to be filed with Income Tax Department, declaring the details of donations received during the year via Form 10 BD and also a Certificate shall have to be issued via Form 10 BE, to all such donors specified in Form 10 BD. Q. Who shall File Form 10 BD? A. Rule 18 AB is applicable to all the entities (charitable institutions) having approval Under section  80 G and Under section  35(1) of the Income Tax Act.  Q. When is Form 10BD to be filed? A. Form 10BD is to be filed for every financial year by 31st May…

Cryptocurrency- taxation

The Goods and Services Tax (GST) law does not clearly state about the classification of cryptocurrency. Currently, 18 per cent Goods and Services Tax (GST) is levied only on services provided by crypto exchanges and is categorized as financial services. Cryptos, by nature, are similar to lottery, casinos, betting, gambling, horse racing, which have 28 per cent of GST on the entire value.   Besides, GST at 3 per cent is levied on the entire transaction value in case of gold. "There is a clarity needed in regard to levy of GST on crypto currencies and whether it has to be levied on the entire value,  or  whether cryptocurrencies can be classified as goods or services and also removing any doubt on whether it can be called an actionable claim," . It…