Need help regarding Demat account & tax saving

[shubhamchugh]

Hi all,
I want to start investing in equity market. Please help me regarding these queries-

1) If I invest 1,50000 Rs. in equity market, that amount will be exempted from taxes. Am I right?

2) If yes, then how would the tax exemption be calculated in my scenario -
* I got the job in August & this is my first job.
* So, if I invest 1,50000 in let say December, will that whole 1,50000 be exempted from taxes given that I invested that amount just 4 months prior to the end of financial year.

3) I am inclined to open demat account with Zerodha but I am having my salary account with HDFC. So, should I better open Demat account with HDFC Securities for more convenience.

4) If I go for Zerodha, how money transfer between HDFC salary account & Zerodha's Demat account would work?

Thanks

 

[traderniftybull]

Hi all,
I want to start investing in equity market. Please help me regarding these queries-

1) If I invest 1,50000 Rs. in equity market, that amount will be exempted from taxes. Am I right?

2) If yes, then how would the tax exemption be calculated in my scenario -
* I got the job in August & this is my first job.
* So, if I invest 1,50000 in let say December, will that whole 1,50000 be exempted from taxes given that I invested that amount just 4 months prior to the end of financial year.

3) I am inclined to open demat account with Zerodha but I am having my salary account with HDFC. So, should I better open Demat account with HDFC Securities for more convenience.

4) If I go for Zerodha, how money transfer between HDFC salary account & Zerodha's Demat account would work?

Thanks

1. No and it cant be, otherwise every guy will do that. Its only by way of ELSS under 80C and not by direct equity investment.
2. NA
3. No its not necessary. Opening a demat account has nothing to do with you salary account. Its your choice to open demat account with HDFC. BTW, HDFC has a high brokerage and other charges, as compared to discount brokers. One point you are missing here, you also need to open a trading account. And for convenience, its always better to have demat and trading account with same broker. My views only.
4. You can always make a transfer to your broker account by way of cheque, NEFT, RTGS, IMPS etc.

 

[Zuluhn]

So there is no way to invest and save on taxes as well as to make good link between that salary and broker account. That's how it's done all the way it should really ? India should make things much more clearer if they want some boom in the economy.