Demat Account opening benefits and harms: Whether you work or do business, you have to pay income tax. You will be deprived of tax exemption on your income if you do not start investing. Tax expert Mukesh Patel told such a thing that…
Income tax saving, Demat account: This news is for all those women who want to manage their money, grow it and earn profit. Know that if you have not yet started the investment journey then you are in loss. Whether you work or do business, you have to pay income tax. You will be deprived of tax exemption on your income if you do not start investing. Experts say that having more than one demat account can help in saving more on income tax returns. You have to file income tax return by July, in such a situation you should understand this with the help of experts. Let us understand how income tax can be saved by opening more than one demat account.
What is this rule regarding Demat…
In CNBC-Awaaz channel under Network18, tax expert Mukesh Patel said that even today many people have a misconception that there can be only one demat account in their name. As per laws, you can maintain more than one demat account. But in this regard he advises to be cautious about the restrictions. Patel explains that you just have to keep one thing in mind, you cannot maintain more than one account with your Depository Participant (DP) or broker. If you want to maintain more than one demat account with two different DPs or brokers, there should be no problem. (For more such information related to women and personal finance, you can click here)
You can take advantage of this rule of Demat like this…
Referring to a 2007 circular of the Central Board of Direct Taxes (CBDT), Patel said that a tax payer can maintain separate status of himself as a trader and investor. He says that there is a need to do cost benefit analysis so that the benefits are more than the extra amount spent. He explains that
Patel said, if I want to avail the benefits of being both a trader and an investor, I will have to maintain two separate demat accounts – one for working purposes and the other for investment. Also, if I don’t want to be a trader and want to continue as an investor… there is Section 45(2A), under which it says you have to follow FIFO (First In, First Out). (Must read this – Girls, don’t hesitate, start investing, money will not be lost, these 3 options will give high returns)
#TaxGuru | एक से ज्यादा डीमैट अकाउंट से होगी टैक्स की भारी बचत सिर्फ करनी होगी टैक्स सेविंग की सही प्लानिंग, कैसे जानिए टैक्स गुरू Mukesh Patel से@RoyLakshman @MukeshPatelTax #DematAccount #MultipleDematAccounts #TaxExpert #Taxsaving pic.twitter.com/eqkkocAUbk
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Some advantages, some disadvantages also….
He also gives another advice, urging people to open more demat accounts in the name of other members of their family as this also helps in saving tax. However, it should be understood that there are some disadvantages of opening more than one demat account as it will involve additional expenses like annual maintenance. Also, sometimes it can be a bit difficult to keep a close eye on so many demat accounts.
