September 2024

A Demat Account, also known as a Dematerialized Account, allows you to keep shares and assets electronically. Shares are purchased and stored in a Demat Account while online trading, making it easier for consumers to trade. A Demat Account consolidates an individual’s interests in stocks, government securities, exchange-traded funds, bonds, and mutual funds. what are depositories and depository participants (DPs)? Depositories are companies that store securities electronically and make transactions easier. National Securities Depository Limited (NSDL) and Central Depository Services Limited are the two depositories registered with SEBI (CDSL). Depositories and investors are represented by Depository Participants (DPs). The investor must go through a DP in order to use the services of a depository. A Demat account is the type of account you must have with a DP. Applicability of Demat account A Dematerialized (or Demat) account is an electronic account that holds securities instead of physical certificates. An investor must open a Demat account with a Depository Participant in order to purchase and sell securities on the Indian stock market (DP). Advantages of opening a Demat account Because investors don’t have to pay stamp duty, the transaction cost is substantially lower than in the physical market. Electronic settlements are convenient and quick. In the event of a securities transfer, there will be less paperwork. Physical certificate risks such as theft, non-delivery, and false certifications are no longer a concern. Investors can sell any number of shares they choose, even if it’s just one. Invest online Procedure to open a Demat account You can open a Demat account with a SEBI-registered depository participant (DP), . You must fill out the account opening form after receiving a copy of the terms of the agreement, rules and regulations, and applicable charges. When opening a Demat account, make sure to include a nominee. Submit all of the relevant document copies. Address evidence, identification proof, and your PAN card are the most important documents. After that, a member of the DP team will call you to complete an in-person verification. Your DP will provide you with your Demat account details once the verification is complete. A Demat account usually takes one to two weeks to open. When opening a Demat account, there is no requirement to maintain a minimum balance of shares. FAQs What is a Demat Account? A Demat account, short for “dematerialized account,” is an account used to hold securities and financial instruments in electronic form. It facilitates the trading of shares, bonds, mutual funds, and other securities without the need for physical certificates. Why do I need a Demat Account? You need a Demat account to hold and trade shares or other securities in electronic form. It is a convenient way to manage your investments as it eliminates the risks associated with physical certificates, such as theft, loss, or damage.

In India, youth folk’s entrepreneurship desires seem to be on the upswing. The main factor about this is that there are currently several more technology options throughout the nation and enabling transforming a business is incredibly easy. The main export items made in the region are hand-print fabrics, marble statuettes and enamel products. Jewelry, brass and lacquer products, wool carpets. Printed fabrics and clothing. All of these products are currently being exported, but still have huge export potential in the international market.  Choose a Business Structure: Decide on the legal structure of your business, such as a sole proprietorship, partnership, limited liability partnership (LLP), or private limited company. Register Your Business: Register your business with the Registrar of Companies (ROC) or the appropriate authority depending on the business structure. You may also need to register with the Rajasthan Shop and Establishment Act if applicable. Six types of business models Affiliate Marketing: Get a commission every time you promote and sell another company’s products and services online with this passive income idea. Freelance: Use your existing skills, such as advertising, writing, design, or programming, to provide services to other individuals and companies. Coaching and Consulting: Become a coach or consultant and sell your experience, advice and recommendations. Information Products: Packaged experiences in eBooks, worksheets, templates and online courses. Software as a Service: You create software or applications and charge users a subscription fee. E commerce: Use services to build websites and sell objects online. Business in Rajasthan Rajasthan is also renowned for its vibrant colors and traditional dance, passionate melodies, and ostentatious displays of culture and heritage, not just to this region, but rather to globally. As Jaipur famously known as pink city, it possesses all of the above qualities, but it might also provide more. It seems to be the home of centuries of artists and manufacturers for whom the fine craftsmanship and others have created a wide range of items on the global arena. Exports are important in the emergence of globalization since it affects the monetary recovery of any country by providing a stable position in the global market. With several options available, the sector, particularly the Industrial sector, plays a vital role in bringing foreign income into the nation. The region OF Rajasthan already has a lot of possibilities for earning foreign currency by selling its goods. The major benefit is the folk’s calm societal atmosphere and corporate structure, and also adequate roadway and train (metro train and airline) linkages to certain other provinces of the country. Further, strategic area, throughout part to whoever is the administrative headquarters, is a significant component of the town’s economic progress. This area boasts a healthy cow population and therefore a range of mineral wealth that can also be utilized for industrial development. Startup at Rajasthan have a favorable growth. Steps to start a business Step 1: Conduct market research Step 2: Moreover, Write your business idea Step 3: Further, fund your business Step 4: Meanwhile, pick a strategic locus for your business Step 5: Choose a legal structure for your business Step 6: Choose a brand name for your business and Register your business from your brand name Step 7: Moreover, Get your business tax Id and employer identification number. Step 8: Furthermore, apply for license and legal permit of business Step 9: Open a business bank account FAQs What are the benefits of setting up a business in Rajasthan? Ease of Doing Business: Rajasthan has made significant improvements in ease of doing business with streamlined processes and single-window clearances. Government Incentives: Various incentives and subsidies are available under state policies like the Rajasthan Investment Promotion Scheme (RIPS) to encourage investment in the state. Strategic Location: Rajasthan’s proximity to Delhi-NCR and access to major transportation routes provide strategic advantages for businesses. Skilled Workforce: The state has a growing pool of skilled and semi-skilled labor. What are the different types of business structures available in Rajasthan? Sole Proprietorship: A business owned and managed by one person. Partnership: A business owned and managed by two or more individuals with shared profits and liabilities. Limited Liability Partnership (LLP): A partnership with limited liability for the partners, protecting their personal assets. Private Limited Company: A separate legal entity with limited liability for its shareholders. Public Limited Company: A company that can offer shares to the public and is listed on a stock exchange.

SWP stands for systematic withdrawal plan. Under SWP, if you invest lump sum in a mutual fund, you can set an amount you’ll withdraw regularly and the frequency at which you’ll withdraw. For example, let’s say you invested in HDFC Top 200 Fund an amount of ₹1 lakh for a year. Let’s assume that you decided to withdraw an amount of ₹10000 per month. So every month, your investment in the fund will reduce by ₹10000. The amount left every month after withdrawal will continue to remain invested. What is SWP? The Systematic Withdrawal Plan or SWP offers investors a regular income and returns money that is left in the scheme. You may withdraw a fixed or a variable amount on a pre-decided date every month, quarter, or year. You may customise cash flows to withdraw, either a fixed amount or the capital gains on the investment. For example, you have 8,000 units in a mutual fund scheme. You have specified a set of instructions to the mutual fund house where you seek to withdraw Rs 5,000 every month through the Systematic Withdrawal Plan. On January 01, 2020, the NAV of the scheme was Rs 10. You would get an equivalent number of mutual fund units = Rs 5,000/10 = 500 units. The mutual fund house would redeem 500 units and give you an amount of Rs 5,000. You still have 7,500 units left in the mutual fund scheme. Now on February 01, 2020, the NAV of the mutual fund scheme increased to Rs 15. The equivalent units of the mutual fund scheme are Rs 5,000/ Rs 15 = 333 units. The mutual fund house would redeem 333 units and give you Rs 5,000 for the month of February. You are left with 7500 units – 333 units or 7167 units. You may continue the calculations in a similar manner for the following months. What is the SWP Calculator? The SWP Calculator is a simulation that shows you the monthly withdrawals from your mutual fund investments. It shows the total value of the mutual fund investment after the withdrawal. You may be able to get a regular income in retirement through the systematic withdrawal plan. The SWP Calculator consists of a formula box, where you enter the total investment amount, withdrawal per month, the expected annual rate of return, and the tenure of the investment. The SWP Calculator shows you the future value of your mutual fund investments. Example of Systematic Withdrawal Plan As mentioned before, the SWP allows investors to generate both monthly revenue as well as an accumulated sum at the end of the maturity period. Refer to this investment and withdrawal schedule for an in-depth idea. Here, an individual has invested Rs. 50,000 for tenure of 1 year along with a systematic withdrawal of Rs. 1,000 per month. Interest rate stands at 10%. As such, total return of investments after the end of the tenor stands at Rs. 4,565. Month Balance at Begin Withdrawal Interest Earned 1 50,000 Rs. 1,000 Rs. 408 2 Rs. 49,408 Rs. 1,000 Rs. 403 3 Rs. 48,812 Rs. 1,000 Rs. 398 4 Rs. 48,210 Rs. 1,000 Rs. 393 5 Rs. 47,604 Rs. 1,000 Rs. 388 6 Rs. 46,992 Rs. 1,000 Rs. 383 7 Rs. 46,375 Rs. 1,000 Rs. 378 8 Rs. 45,753 Rs. 1,000 Rs. 373 9 Rs. 45,126 Rs. 1,000 Rs. 368 10 Rs. 44,494 Rs. 1,000 Rs. 362 11 Rs. 43,856 Rs. 1,000 Rs. 357 12 Rs. 43,214 Rs. 1,000 Rs. 352 FAQs When to use SWP? As per experts, SWP works best after retirement because an individual needs income Can individuals who are not retirees invest in an SWP? No, SWP investments are not limited only for retirees or senior citizens.

Form 16B basically is an indicator of the amount of money that has been deducted as property Tax Deducted at Source (TDS). The buyer, in this case, is required to basically minus the TDS on property at the time of the property sale. Form 16B which is a TDS certificate reflects the amount that has been deducted as TDS on property that has been deposited by the buyer with the Income Tax Department. Buyer is required to deduct TDS on property at the time of sale of the immovable property. The TDS is deducted at 1% from the amount that the buyer has to pay the seller. That amount is then to be deposited with the Income Tax Department. After the amount has been deposited with the Income Tax Department the buyer will have to issue Form 16B to the seller. This is a proof of the TDS being deducted on the property and that it is deposited with the government. Form 16 is TDS certificate for the TDS deducted from salary, Form 16A is TDS certificate for the TDS deducted from all other types of payments, Form 16B is TDS certificate for the TDS being deducted on the sale of property. Every person who has income chargeable to tax is required to file an income tax return to report their income and tax liabilities. However, income tax laws in India provide for the collection/deduction of tax at source (TDS/TCS). This, on the one hand, ensures, continuous revenue flow to Government and on the other hand, keeps a check on tax evasion. It is the responsibility of the payer to deduct tax (TDS/TCS) and pay it to the credit of Government. For such tax deduction, obtaining a Tax deduction Account Number (TAN) is mandatory. Deductor also has the responsibility of filing Tax deduction at source (TDS) return providing particulars of deductees, nature of the payment made, tax deducted, rate at which it is deducted etc for every quarter of a financial year. The TDS returns filed facilitate the income tax department give credit of TDS to the right deductees. Nature of Tax Deduction and Person Responsible to Deduct Tax here is a transfer (other than cases of compulsory acquisition) of immovable property Immovable property means land/building/part of building but excluding agricultural land* Buyer is responsible for paying consideration to resident seller in respect of such transfer Transfer is for a consideration of Rs 50 lakhs or more Buyer must deduct tax at the rate of 1% of consideration either at the time of credit or payment If seller does not provide for PAN, TDS at the rate of 20% as per Section 206AA Contents of Form 16B Deductors and Deductee name and address Deductors and Deductee PAN number Assessment year Payment acknowledgement number Amount paid/credited Verification Form 26QB and Form 16B Form 26QB is a return cum challan for payment of TDS to the Government which shall be furnished electronically for tax deducted under Section 194-IA.  Due date Form 26QB shall be furnished within 30 days from the end of the month in which deduction is made. For eg: if payment/credit is made on 16th April, Form 26QB shall be furnished by 30th May.  InstallmentsIn case of payment/credit in installments, as TDS is required for each installment, Form 26QB shall also be furnished for each such deduction.  Multiple parties to transactionForm 26QB shall be furnished for each buyer and seller combination.  Example 1: If there one buyer, B1 and 2 sellers, S1 and S2, Form 26QB shall be furnished separately for B1 and S1 combination and B1 and S2 combination, hence overall 2 26QB to be filed.  Due Date for Issuance of Form 16B Deductor shall issue Form 16B to the payee within 15 days from the due date for furnishing Form 26QB and Form 16B can be generated and downloaded from TRACES – TDS Reconciliation and Analysis and Correction Enabling System. For eg: Using the same example as above w.r.t due date for Form 26QB, Form 16B shall be issued on 14th June. Depositing TDS amount Once the challan is printed, the tax amount is deposited as a cheque or demand draft. When the taxpayer opts to pay at a bank, he/she will be redirected to the bank’s official payment page. Once the amount is paid, a challan counterfoil with CIN, payment details, bank’s name, etc. is displayed. This counterfoil acts as proof of payment. After this, taxpayers can proceed to the TRACES portal after 5 days and download Form 16B. Procedure to Generate and Download Form16B from TRACES Register as taxpayer on TRACES with details of PAN and either detail of tax deducted or details of challan or details of Form 26QB. Also, enter the verification code and click on ‘Proceed’. Activation link will be sent to email id through which account can be successfully created If already registered login to TRACES  with username as ‘PAN’ and password Under downloads tab Select ‘Form 16B (For Buyer)’ Furnish details such as assessment year, acknowledgment no. of the Form 26QB and PAN of the seller Form 16B will now be available on requested downloads section under Downloads category Form 16B can now be printed/saved Difference Between Form 16, Form 16A, and Form 16B Particulars  Form 16 Form 16A Form 16B  Who issues it? Issued by the employer Issued by financial institutions, tenants, etc. Issued by property buyers to sellers. Who is it directed at? Directed towards salaried employees.  Directed towards non-salaried employees. Directed towards property sellers.  Purpose  Form 16 is issued for TDS on salary. Form 16A is issued on income generated through non-salary sources such as securities, returns on investment, rent, or interest on FD.  Form 16B is issued for TDS on earnings generated through the sale of immovable property. Components  Proof of income Employer’s PAN and TAN Employee’s PAN Tax paid on behalf of employees  Payment acknowledgment number Surcharges and education cess Deductor’s PAN and TAN Deductee’s PAN Amount of Tax paid The receipt number of TDS paid   Deductor’s PAN and TAN Deductee’s PAN