What is FATCA ? (Foreign Account Tax Compliance Act)

On July 9, 2015, U.S. Ambassador to India Richard Verma and Indian Revenue Secretary Shaktikanta Das signed an agreement to implement the Foreign Account Tax Compliance Act (FATCA). The agreement is designed to increase transparency between the two nations on tax matters. The agreement takes effect September 30 and underscores growing international cooperation to end…

Lambi innings ki taiyari

Retirement planning is one of the most important goals in the life of an individual. Typically, individuals prepare during their 30 years of working age acquiring knowledge, skill and sufficient income in order to live a good life post-retirement. The post-retirement life is expected to be as long, with increase in life expectancy and hence…

What are ‘Value Stocks’

Definition : The shares trading below their intrinsic value are considered value stocks and can be considered good investments. Investment Guru Benjamin Graham and Warren Buffett pioneered this concept. Value stocks may not be confused with penny stocks which trade at below par prices. Explanation : A value investor seeks under valued stocks ie stocks…

What is STT

Definition : Securities Transaction Tax (STT) refers to the tax levied on transaction (purchase or sale) of securities listed on the Indian stock exchanges. Such securities include equity shares, derivatives and equity-oriented mutual fund units. The rate is specified by the Central Government from time to time. STT is not applicable for any off-market transactions.…

Rupee – Cost Averaging

Definition : Rupee Cost Averaging is the technique of investment in which a fixed sum is invested to purchase securities at a regular interval irrespective of the price. There are two broad ways of investing funds: one by way of one time lump sum amount and another by way of systematic investment (recurring or SIP).…

What are ‘Zero Coupon Bonds’

Definition : Zero Coupon Bonds or ZCBs have no “coupon” or interest rate/ payments attached during the tenure of the bond. To compensate this, ZCB is issued at a discounted price, which is less than its face value. At the time of maturity, investors receive the payment at face value. The positive difference between the…