Mrs. Bectors Food Specialities Limited IPO Message Board (Page 29)

Good analysis..

Read Couple of More Post and Articles.
You have shared some Wrong Info.

My View Avoid wether You wants to Buy 2 Shares or 200 Shares.

I think here in this case provision of Dividend stripping would be applicable....

Dividend stripping is not exactly illegal. However, it causes a loss to the exchequer. To address this, section 94 (7) of the Income-Tax Act was introduced. Generally, those shareholders, whose name is included in the register of the company as shareholders on the record date, are entitled to receive dividends declared by the company.

The provisions of income tax on dividend stripping are applicable when an investor, who buys securities within the 3 months prior to the record date and sells such securities, within 3 months after such date in case of shares and within 9 months in case of units. In such cases, the capital loss arising to the shareholder to the extent of such dividend income shall be ignored i.e. the loss would not be available for set off against capital gain income.

Example:

Mr A bought 1000 shares of B Co. Ltd. on Mar 2, 2018, for Rs.180/ share.
B Co. declared a dividend of Rs.40 that will be payable on Mar 31, 2018. So he earned an income of Rs.40,000.
On April 20, 2018, Mr A sold the shares of B Co. Ltd for Rs.120 per share. Thus he made a loss of Rs.60,000.
The dividend income is wholly exempt in his hands.
Of the short-term capital loss made of Rs. Rs.60,000, as per Section 94(7), Rs 40,000 would be disallowed and he can claim a loss only to the extent of Rs 20,000.
If in the above example, had Mr. A sold the shares at Rs 160, his capital loss would be lesser than the dividend received. And accordingly, no loss would be available for set off. On the other hand, if he makes a profit, his entire dividend will stand as exempted and the amount of capital gain will be subject to capital gains tax

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But huge tax

OMG !

Unbelievable but verified...
19480% dividend

@Paymzia - Dividend up to 1 lakh is exempted. And ex-dividend rate will reduce price, so on selling after dividend, short term less occur which can be setoff against current short term gains...

if someone take calculated risk, this can be turn as profitable...

Should we go for it?

there has been some huge tax.......! watch show on zee bussiness today at10:30am...!

My Apology ... Dividend upto 1 lakh exemption was till FY 2019-20. From 2020-21 it is taxable as per slab.

If one's income doesn't come under tax slab, will it be tax free?

Mai wohi bolne wala thha Patel sir... no exemptions since 2020... thats why most likely, people will sell it before record date... otherwise in 30% bracket you get dividend of 600 rs only after tax, and the loss from getting exdividend may exceed that dividend profit...

@ Devenkeme yes sir... but if you are getting more than 5000 dividend then they will automatically cut 10% (7.5% currently) as TDS... then claim it back in IT returns... or send the company form 15G then they will not cut TDS

Thank you Dr.

@p patel
Look at reviced tax. Most of the people may sell before record date. Because of tax fear .

Such a great news..Thanks for posting.

I bought 5 shares only to see how things go or market responds to this dividend. Baki experts ke advice pe dekhte hai should we buy more or not..

I have read somewhere after dividend it's price will reduced:

CMP price ex-dividend date - dividend price = Market price per share

So for example, if CMS is 1000 at that time:

1000 - 974 = 26 Rs Share price

After tax considerations, brokerage charges, I'm not sure anything left much.

Seems Majesco is delisting. The US portion is already shut down. Sincere request to perform due diligence before entering on Majesco now for saving our hard earned capital.

To Greedy People's,

Those who are buying just for Dividend must Note that Price will be Decided by the Exchange after Dividend.
The Price may Come to Negative after Dividend it means You sale shares and Pay for this. Just Like Crude

Hii guys my father income is hardly 50k per year so he is not under any income tax slab.how can i take benifit of it in this case?

it's advised or not to do so?

thanks in advance..

@Killerr Please avoid this, there's nothing left now in this, company is about to shut down.

If the price of the share is less than 974 on ex-dividend date, the actual share price will be in minus. So if you want to share your sell, you will have to pay for this. The actual share price will be reduced on the ex-dividend date by the dividend price.

If anyone buys fresh now, they'll be in 200-300 rs loss per share

@Kpriya can you explain how?