Bansal Wire Industries Limited IPO Message Board (Page 1)

​@SilentIPOApplicant Sorry, not able to help you regarding Mutual Funds as do not subscribe.

Your expectation is too much. I dont think any mutual funds has gave this much in 10 year period. In smaller periods you will see such returns becasue of crazy run but not in longer term.

​@SilentIPOApplicant  You name is appropriate as it sync with passive investors and you should unvest in MFs ☺️☺️
I do go in for SIP also , had ABSL n HDFC small cap, sold them to large extent and invested in IPOs beginning of this year.
As churning process, started SIP in Quant Flexicap which should do much better than others , besides midcap at low SIP.
Growth with CAGR of 10-15 % p.a. is an ideal one for me.

My personal take and not any recommendation .

​@SilentIPOApplicant  Pls read as invest instead of * unvest*

My bad 'cas of useless autocorrect 😞

​@Rakcyt After 8 pm, auto correct gets disabled on its own 😜😊Readers automatically read 'food for thought' and 'invest' correctly. So, no worries 😁

Opens : 19th July 2023
Closes : 23rd July 2023

Size??

Let me explain you in simple words
1) no limit
2) capital gains in only taxed to person whose demat account allotted the shares
And if not allotted then no liability

I.am not a CA or tax consultant, but I have familiarity with income tax scrutiny cases.

In case your friend gets an allotment and there is a profit, he will have to add the profit to his income, either as capital gains or business income. If he returns more money to you than you transferred because of the profit, you will also have a tax liability, probably as speculative business income.

If your friend or his spouse's ITR gets assuming they had an income of 2L*50 = 1 cr. Then the onus is on the assessee to explain why it should not be considered income. They can say it was just a loan that was given and returned 50 times and you could provide an affidavit confirming that. The IT department could send you a notice asking to confirm the transactions and asking other questions ( during the course of the investigation they might even decide to scrutinize your return if they find any evidence to warrant it) and then it is up to the assessing officer to decide. If an adverse order is passed, there is a long appeals process.

If your own return gets selected for scrutiny, the assessing officer might add the money being returned to you as your income and then it is up to you to contest it.

So, while there may be nothing illegal about what you are planning to do and the probability of being selected for scrutiny may be low based on other factors, it can create a headache for your friend and you in the future. If you value peace of mind for yourself and your friend, it might be better to avoid such transactions .

Like I said , I am not a tax professional. It is best to consult an expert, especially one who is experienced in handling scrutiny assessment cases, with the exact details of your situation.

Thanks a lot  @Prince and @colcol  for your replies.

​@Prince 🤴 I hope and pray things be as simple as the you have mentioned until any IPO is allotted by my friend or his wife's name.

@colcol, special thanks to you for your details reply. Actually my inquiry was for the situation till no IPO is allotted for my friend and for his IPO. But money transactions are happening from my bank (To Apply) and getting those principle amount back again to my account from friend's bank account (For non allottement).

In case of any allottment in friend's account, Capital gain tax for the net profit will offcourse be applicable for him that we have discussed mutually.

My main concern was for the "turnover limit" if any and if there is any other kind of taxes even in case of non allottment for them.

Any Tax consultant person or any CA if available in this forum and kindly can enlight this matter with exact legal and official ways will be a very much helpful thing for me.

Thanks.

​@Ashish KS If you have sbi account, you need not transfer money to their account and you can apply from your account adding their demat account. Although, this is considered as third party and barred, lot of people are getting allotted. You can try

Mr KGSKIPO,

But you are also saying this 3rd party is barred.
And if so, then will the application be valid if some other banks which still have this 3rd party ASBA facility to Apply.
Or this is a special previlege for SBI customer Only.

​@Ashish KS 
There is no official turnover limit. Just remember that if any money is coming into your account or you are receiving cash, you should either report it as income or be able to establish why it should not be considered income. Since the vast majority of cases don't have to face scrutiny assessment under Section 143(2) or 148 of IT Act, it is likely that you will not have to provide this explanation, but having frequent transfers into the account increases the likelihood of getting selected for scrutiny and you should be prepared for it.

@colcol
Thanks again for your reply.

1) No cash transfer will be involved here only bank to bank transfer will happen.
2) Situation will be like, B4 any IPO i will send 2+2 lacs in my friends account. And will get that 4 lacs back in my account after non allottment.
3) And i'm considering #2 for 95% times as allottment is so hard now a days but #2 may be frequent because of mainboard or SME IPO application.

That is also going to be under scurtiny thing or what? As 95% times, situation will be like only 4 lacs i'm transfering from my bank and getting it back after 3/4 days.

In case of any allottment, scneario will be different, Taxes and all will be as per profit for me as well as for my friend that is understood.

​@Ashish KS The arrangement you are describing is not as straightforward as you think. If you are going to share in the profit/loss , you will basically be speculating on the price of IPO stocks without taking delivery and paying STT. It is essentially a satta market. Under what head will you show this income ? Will your friend show a loss for the profits he transfers to you ? Under what head ?

As for scrutiny, if you have 25 or 50 inflows of 4L in your account in a year and don't show commensurate income in your ITR, it is possible your return might get the system.

It is best to take a specific professional opinion from an expert after describing your entire situation in detail. No CA worth his salt will provide a specific client recommendation on an internet forum.

​@colcol 
You are right things are not that much straightforward.
Here, the sad part is im not being to control just 2 extra account by my money but seeing many peoples applying or maintaining 15-20-30-40-80 different Demat accounts.
How can they do so? :) :)?

​@Ashish KS So far, I know only SBI allows to apply IPO with different dmat numbers under one account. You can go through the forum and many people got allocations with third party. Nothing wrong in trying than discussing here.

​@Ashish KS People controlling 80 accounts are probably breaking some rules/laws and may not even be aware of it. They are okay until they get into trouble. For me, peace of mind is more important.

​@Ashish KS Buddy i am ca finalist you can trust me and i completely 1.5 years of practice training ☺️. daily we manage this kind of transaction you don't have to worry about it.

@Prince , so you are saying if his friend makes 1 lakh CG and transfers back 3 lakhs to Ashish, Ashish would not have any tax liability ?

By the way, how many Section 143(2) /148 assessments have you personally handled ?

​@Chhote Lal Ji, Big corporates carry forward their business losses all the time. Moreover, FnO is a non-speculative businness, and FnO losses can offset all income ( housing, interest, dividend, etc) except Salary income in the current year.

@StarGarage ITR3 is required for reporting business profit or loss, but please do consult a tax expert.

​@Mani sharma Markets are forward looking. Results impact appears to be already factored in cmp. Any adverse news from here may bring some deep correction but another big rally in short term may not be seen. Let's keep a keen watch

​@Chhote Lal Thanks sir for rply

@Chhote Lal Ireda is going to plan fpo in this year. Will it have any benefits to existing share holders?

​@PavanM With Uniform Civil Code (UCC) becoming reality, existence of HUF is doubtful. Kerala abolished HUF way back in 1975 and with UCC all set to be implemented in Uttarakhand and Goa, outcome regarding HUF provisions should get clarity.
As of now, except for Kerala, HUF account can be opened anywhere in India.

​@IPO.RIKI Baat toh sahi hai. Lekin SME space mein toh bahut se IPO hain, wahan maza le ke dekhiye 😊

Bhai Saheb

SME me 100 se jyada IPOs me 5 applications se apply kar chuka hu

Lekin aaj tak ek bhi nahi mila kisi b IPO me