Blogs

Covered Call Writing

Matalia

7 August 2023

Covered Call Writing

Introduction In a covered call trading strategy, the trader sells a call option while also owning the underlying security. The strategy limits the upside profit potential of the underlying but does not offer protection if the stock price of the underlying falls. The major risk with the strategy is having to hold underlying for a Covered Call Writing

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Derivatives Taxation

Matalia

25 June 2023

Derivatives Taxation

Introduction As per Income Tax Act, Income from F&O trading is treated as business income. Business income is normally divided into speculative and non-speculative income. F&Os are used for hedging and for taking/giving delivery of underlying contracts. Hence, F&O income will be considered a non-speculative business. Deductions & Set Offs Deductions can be taken for Derivatives Taxation

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INDIAN BANKING CORRELATION ANALYSIS

Matalia

6 June 2023

INDIAN BANKING CORRELATION ANALYSIS

Notable Findings The 20 day rolling correlation analysis has been performed on banks which are major constituents of both Bank Nifty and Finnifty starting from Jan 2017 to May 2023. Some interesting conclusions drawn out are as follows: * The correlation between Bank Nifty and Finnifty during certain times has dropped below 0.8 from the INDIAN BANKING CORRELATION ANALYSIS

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Section 54EC

Matalia

6 June 2023

Section 54EC

Introduction A long-term capital gain is any revenue that you get from the sale of an asset. The asset could be land, property or even investments. According to the Income Tax Act, you are liable to pay tax for such gains. However, you can reduce the liability of these taxes. Invest in section 54EC bonds, Section 54EC

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Bond vs Fixed Deposit vs Debt Mutual Fund Taxation

Matalia

8 April 2023

Bond vs Fixed Deposit vs Debt Mutual Fund Taxation

Fixed Deposit Taxation Earning of fixed deposit interest is fully taxable under “Income From Other Sources”. Tax on FD depends tax bracket of an individual. TDS is applicable on interest on FD when an amount interest increase by Rs 40000 per annum, 10% TDS will be deducted by bank at time of credited interest annually. Bond vs Fixed Deposit vs Debt Mutual Fund Taxation

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Investing in Gold ETFs vs Sovereign Gold Bonds

Matalia

30 March 2023

Investing in Gold ETFs vs Sovereign Gold Bonds

Gold is one of the most preferred investment options as it works as hedge against inflation. In recent years, it has been seen that people are shifting from physical gold to alternate form of investing in gold; Sovereign Gold Bond (SGB) and Gold ETF (GETFs). Given below we have highlighted difference between SGBs and GETFs Sovereign Investing in Gold ETFs vs Sovereign Gold Bonds

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