Income Tax Rules 2026 Explained: Save More Tax with These Hidden Updates

Commodity trading has been around for centuries. However, it gained popularity in modern times when companies began to use it to hedge against inflation or deflation.

Traders are often known to be speculators, as they invest in commodities with the hope that the price of these commodities will rise.

There are 6 major commodity trading exchanges in India through which you can trade on commodities.

Top Commodities for Trading in India as Per Volume and Movement

Gold

The best commodity to trade in India is gold. The reason is that it is the only commodity that has a very strong correlation with the rupee. Also, it is considered one of the safest investment options in India.

Investors looking to invest in gold directly can purchase the physical asset, buy shares of a mutual or exchange-traded fund that replicates the price of gold, or trade futures and options in the commodities market.

Also Read - Tax on Gold Investment

Silver

The second best commodity to trade in India is Silver. Silver has always been a very stable asset with good returns in the long term, but due to its low liquidity and high transaction costs, it was not considered an investment option by many people.

However, with the launch of the MCX-SILVER exchange, this has changed completely, and now more than 80% of total trading in Silver happens on this exchange.

The MCX offers four silver contracts for trading. The most popular is the Big Silver futures contract, traded in lot sizes of 30 kg. Mini Silver, a 5 kg lot size, is the second most popular contract.

Also Read - ETFs of Silver – A Good Investment

Crude Oil

Thirdly, we have crude oil, which is also considered one of the best commodities for trading because it strongly correlates with other commodities like Gold and Silver. There are also many other factors like production cost, etc. which are also considered while trading in crude oil.

Investors interested in trading futures and options on oil can do so by purchasing them directly on a commodities exchange. However, the most common way for the average investor to get exposure to oil is to buy shares of an ETF that tracks the price of oil or a basket of related companies.

Also Read - How to read crude oil inventory data

Aluminum

Aluminum is one of the most widely traded commodities globally and has a huge impact on the global economy.

Aluminum is used in many industries, from aerospace to construction materials to food packaging. Aluminum is also used in transportation, building and construction, electrical equipment, machinery, and much more.

Copper

Copper is another popular metal and is considered one of the best metals to trade. It's used in everything from wiring to plumbing to roofing materials. Copper is also used in jewelry making and other industrial applications.

Copper demand will be high, which means that copper futures are likely to rise in value. Trading in these futures is done on Indian commodity exchanges like the Multi-Commodity Exchange (MCX).

Final Note

When it comes to commodities investing, there are a lot of factors to consider. Commodities can be volatile, they're not as liquid as stocks and bonds, and they don't offer the same predictability that stocks do. But if you pick the right ones and diversify your portfolio correctly, commodities can provide solid returns over time.

Intraday trading, also known as day trading, involves buying and selling financial instruments within the same trading day. The goal is to capitalize on small price movements in the market. While it can be profitable, intraday trading requires a solid strategy and a disciplined approach to succeed. In this guide, we’ll explore some tried-and-tested intraday trading strategies in simple language to help you navigate this fast-paced world.

1. Understanding Intraday Trading

Before diving into strategies, it’s crucial to understand what intraday trading entails. Unlike long-term investing, where you hold assets for months or years, intraday trading involves making quick decisions and closing all positions before the market closes. The objective is to make profits from small price fluctuations within the day.

2. Key Elements of Intraday Trading

• Volatility: Look for stocks or assets that show significant price movements during the day.
• Liquidity: Choose stocks or assets with high trading volumes, ensuring that you can buy and sell them easily.
• Time Frame: Intraday trading typically operates within short time frames, ranging from a few minutes to a few hours.

3. Top Intraday Trading Strategies

Here are some of the most popular and successful intraday trading strategies:

a) Scalping

Scalping is one of the most common intraday trading strategies. The idea is to make multiple trades throughout the day, each aiming to gain a small profit. Traders who scalp look for small price changes and capitalize on them repeatedly.

• How it works: Scalpers enter and exit trades within minutes or even seconds, aiming for small gains that accumulate over time.
• Key to success: Speed and precision are essential. You need to be able to make quick decisions and have a fast trading platform.

b) Momentum Trading

Momentum trading involves riding the wave of a stock that is showing a strong upward or downward trend. The strategy is based on the belief that a stock that is moving strongly in one direction will continue to do so for a period.

• How it works: Identify stocks with strong momentum (sharp price movements) and enter trades in the direction of the trend.
• Key to success: Timing is crucial. Entering the trade at the right moment and exiting before the momentum fades is essential.

c) Breakout Trading

Breakout trading focuses on identifying key levels where the price of an asset is likely to break out of a range. This could be a resistance level (a price ceiling where the stock struggles to rise above) or a support level (a price floor where the stock struggles to fall below).

• How it works: When the price breaks through a key resistance or support level, it often leads to a significant price movement. Traders enter the trade at the breakout point.
• Key to success: Identifying genuine breakouts and avoiding false signals is critical.

d) Reversal Trading

Reversal trading, also known as counter-trend trading, involves identifying points where a current trend is likely to reverse. This strategy is more challenging as it requires you to predict when a trend is about to change direction.

• How it works: Traders look for signs that a trend is losing strength and prepare to enter a trade in the opposite direction.
• Key to success: Strong analytical skills and the ability to recognize early signals of a trend reversal are vital.

e) Gap and Go Strategy

This strategy involves trading stocks that have a significant price gap between the previous day’s closing price and the current day’s opening price. The idea is to capitalize on the momentum that often follows these gaps.

• How it works: Identify stocks with large gaps at the market open and enter trades based on the direction of the gap.
• Key to success: Quick analysis and decision-making at the market open are essential for this strategy.

4. Tips for Successful Intraday Trading

• Develop a Plan: Always trade with a well-defined plan, including entry and exit points, and stick to it.
• Manage Risk: Use stop-loss orders to limit potential losses. Never risk more than you can afford to lose.
• Keep Emotions in Check: Stay calm and avoid making impulsive decisions based on fear or greed.
• Practice with Paper Trading: Before risking real money, practice your strategies with paper trading or a demo account.
• Stay Informed: Keep an eye on market news, economic indicators, and other factors that can influence price movements.

5. Conclusion

Intraday trading can be highly rewarding, but it requires a deep understanding of market dynamics, disciplined execution of strategies, and constant learning. By employing these successful intraday trading strategies and following the tips provided, you can increase your chances of making consistent profits. Remember, patience and practice are key to becoming a successful intraday trader.

Happy trading!

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Many people see the stock market as a great way to make quick money. While it’s possible to earn Rs 1,000 daily, it can be challenging, especially for beginners. Often, people struggle because they don’t fully understand how the market works.

The stock market can change rapidly, and making money requires more than just luck. You need to do your research, have a plan, and sometimes get advice from experts. While trading might seem like gambling, it can be a reliable way to make money if done right.

So, how can you earn Rs 1,000 per day from the stock market? Here are some simple strategies to help you get started.

1. Aim for Small Profits from Multiple Trades

Instead of trying to make a big profit from one trade, focus on making small profits from several trades throughout the day. Expecting a big return from just one trade is unrealistic. By spreading your trades across different stocks, you increase your chances of making a profit.

The key is to take advantage of small gains. If you see a small profit, take it rather than waiting for a bigger one that may never come.

2. Trade High-Volume Stocks

High-volume stocks are those that are bought and sold a lot during the day. These stocks are easier to trade because there’s always someone willing to buy or sell. This is important for intraday trading, where you need to close your trades by the end of the day.

Do some research and make a list of 8-10 high-volume stocks to trade. This will help you make better decisions and increase your chances of hitting your daily profit goal.

3. Focus on Stocks in the News

Stocks that are in the news often move up or down quickly, creating opportunities to make money. News about new products, earnings reports, or economic changes can cause a stock’s price to change significantly.

Keep an eye on current events and focus on trading stocks that are making headlines. The extra attention these stocks get can help you achieve your Rs 1,000 per day target.

4. Use Stop-Loss Orders

A stop-loss order is a tool that helps you limit your losses. It automatically sells a stock if its price drops to a certain level, protecting you from losing too much money. Setting a stop-loss helps you avoid holding onto a losing trade for too long.

By using stop-loss orders, you can protect your profits and stay on track to reach your daily earnings goal.

5. Keep Trading Costs Low

Trading costs like brokerage fees and taxes can reduce your profits. To maximize your earnings, try to keep these costs as low as possible. Choose a brokerage that charges low fees and be aware of other expenses that come with each trade.

By minimizing your trading costs, you’ll keep more of your profits and make it easier to earn Rs 1,000 each day.

6. Start with a Small Capital and Gradually Increase

If you're new to trading, it's wise to start with a small amount of money. This way, you can learn without risking too much. As you gain experience and confidence, you can gradually increase the amount you invest. This cautious approach helps you avoid significant losses early on and builds your skills over time.

7. Learn Technical Analysis Basics

Understanding technical analysis can give you an edge in trading. It involves studying price charts and using indicators to predict future stock movements. Basic tools like moving averages, support and resistance levels, and trend lines can help you make more updated trading decisions. Even a basic understanding of these concepts can improve your trading strategy.

8. Practice Discipline and Emotional Control

The stock market can be emotional, with prices going up and down quickly. To succeed, you need to stay disciplined and not let emotions like fear or greed drive your decisions. Stick to your plan, take profits when they come, and don’t chase losses. Emotional control is crucial to consistent success in the stock market.

9. Use Paper Trading to Practice

Before you start trading with real money, consider practicing with a paper trading account. This allows you to simulate trading in real-time with virtual money. It’s a great way to test your strategies and get comfortable with the trading platform without any financial risk. Once you’re confident in your approach, you can start trading with real money.

10. Keep Up with Market Trends and News

The stock market is influenced by many factors, including economic data, global events, and industry trends. Keeping yourself updated with the latest news and market trends can help you anticipate movements and make better trading decisions. Subscribe to financial news channels, follow market experts on social media, and regularly read financial newspapers or websites.

11. Join Trading Communities

Being part of a trading community can provide valuable insights and support. You can learn from the experiences of other traders, get tips, and even discuss your strategies. Online forums, social media groups, or local meetups can be great places to connect with fellow traders and stay motivated.

12. Avoid Overtrading

While it’s important to make multiple trades to achieve your daily profit goal, be careful not to overtrade. Overtrading can lead to higher costs and increased stress, which might reduce your overall profitability. Focus on quality trades rather than quantity, and make sure each trade aligns with your strategy.

Conclusion

Earning Rs 1,000 per day from the stock market is achievable with patience, discipline, and a well-thought-out strategy. Start small, learn the basics, and gradually refine your approach as you gain experience. Keep an eye on market trends, stay updated, and remember that consistency is key. With these strategies, you can build a steady income stream from the stock market over time.

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ETFs of Silver

Silver, a commodity that has always been in high demand as it has been widely used in making ornaments. Also, it has been used for investment purposes for years.

It is one of the most useful and important metals in the world. It is used in several industrial processes, including electronics and photography, as well as jewellery making.

If we talk about the prices, then we’ve figured out that the price of this commodity is highly volatile, which makes it a suitable investment option for short-term traders.

Nowadays, silver is also considered a heavy metal for investment purposes and that’s the reason many investors are buying it for safe transactions.

If you want to invest in silver, you can buy physical silver or exchange-traded funds (ETFs).

These days Silver ETFs have emerged as an attractive investment vehicle for both retail and institutional investors. Let’s know about Silver ETF in detail:

What are Silver ETFs?

An ETF is a fund that owns assets such as stocks or commodities and trades on stock exchanges. An ETF can be bought and sold like a common stock on a stock exchange at any time during the trading day.

Silver ETFs are made up of shares that represent an interest in the underlying asset. The price of each share of a silver ETF is determined by what the market is willing to pay for it at any given time during the trading day (like any other security).

When you buy or sell shares of an ETF, your broker will execute the order on behalf of his client (you) through an exchange where the security trades.

Talk to our experts to learn more about Silver ETFs - 0120 4400700

How Do Silver ETFs Work?

Unlike mutual funds, which are priced once per day at the close of business, silver ETFs trade throughout the day based on supply and demand. The price of an individual share will vary throughout the trading day as buyers and sellers interact with each other through computerized systems called electronic communication networks (ECNs).

As long as demand for a particular share remains greater than supply, its price will continue to rise until it reaches its maximum allowable trading price (MAWP) set by its issuer.

As long as demand falls below supply, its price will decline until it hits zero or becomes negative when everyone who wants to sell has done so and no one else wants to buy any more shares at that time.

Also Read - Golden Chance to Invest in Gold

Tax on Silver ETFs

The Income-tax slab rate will be applicable on returns of Silver ETFs if sold within three years of purchase. After which, 20% tax will be charged under long-term capital gains (LTCG) tax with indexation benefits.

Benefits of Investing in Silver ETFs

Diversification Benefits

Silver ETFs can help investors diversify their portfolios by providing exposure to one of the most popular precious metals on the market. Unlike gold, which has recently become more volatile and less liquid, silver is more stable and liquid.

As such, silver ETFs provide investors with a way to balance out their portfolios by adding exposure to another asset class that can reduce risk while still offering some potential returns.

Inflation Protection Benefits

Silver's price tends to rise when there is high inflation because it acts as an alternative store of value and a means of exchange during periods of hyperinflation or currency devaluation.

This makes it an attractive investment during times of economic uncertainty, particularly when prices are rising rapidly due to increasing demand from developing countries and growing debt levels in developed countries like India.

Also Read - Low-Risk Investment Options in India

Listed on the Stock Exchange

Silver ETFs are listed on stock exchanges, which makes them easier to trade than physical silver. ETFs allow investors to buy and sell large amounts of silver without having to store it.

Silver ETFs are backed by a physical stockpile of silver, assuring that the fund is solvent and has the assets needed to meet its obligations. Silver ETFs can be sold short or used as collateral for other investments.

More Liquidity

Silver ETFs are more liquid than physical silver. This means that you can buy and sell your silver ETFs with ease, while physical silver is more difficult to buy and sell.

Silver ETFs provide a quick way to invest in the commodity. Purchasing physical silver takes time, as you must find a seller and arrange for delivery.

By contrast, you can purchase an ETF at any time during market hours. You also don't have to worry about storing your investment or finding a safe place for it.

Silver ETFs Are More Volatile Than Gold ETFs

While both gold and silver can be risky investments, silver is generally more volatile than gold. This means that its price changes more quickly than gold's price.

This is due in part because most investors hold less interest in silver than they do in gold, which means that the supply and demand for silver tend to fluctuate more than it does for gold.

This can cause sudden spikes or dips in the price of silver, which makes it more difficult for investors to predict how much their investments will increase or decrease over time.

Popular Silver ETFs in India

ICICI Prudential Silver ETF

The scheme will try to generate returns that are in line with the performance of physical silver in domestic prices as derived from the LBMA AM fixing prices.

The scheme plans to invest its proceeds in physical silver and silver-related instruments. You can benefit from investing in silver ETFs because they provide greater liquidity and fewer storage costs than physical silver.

Aditya Birla Sun Life Silver ETF

Aditya Birla Sun Life Silver ETF is an Open-ended Silver Commodities scheme offered by the Birla Sun Life Mutual Fund House.

The scheme aims to generate returns that are in line with the performance of physical silver in domestic prices, subject to tracking errors.

The current net asset value of the Aditya Birla Sun Life Silver ETF is Rs 62.9939 for its growth option, as of 24 May 2022.

Conclusion

Silver ETFs are similar to gold ETFs in that they are an investment vehicle that allows investors to buy and sell shares of silver. But there are some important differences between these two types of investments.

EBITDA stands for Earnings before Income, Tax, Depreciation, and Amortization. This is an important metric that tells you a company’s operating performance such as whether a company has an ability to generate cash flow or not. Many stock analysts use EBITDA to know a company's net earnings so as to know the share trading value of the same.

Introduction to EBITDA

EBITDA is basically a financial metric that tells a company about its financial performance before tax, depreciation etc. EBITDA can also be used as a net income. In other words, EBITDA is a useful tool that helps company professionals to evaluate a business.

Business experts use EBITDA to compare two small businesses. Here are the important factors which need to be considered:

Earnings - Income get from an investment

Interest - Money paid toward a loan or debt incurred by deferring loan repayment

Tax - The government applied tax on the organization

Depreciation - The decrease in the life of the asset

Amortization - The process of reducing or paying off debt at regular intervals.

Asset - An asset which has some value and that can be tangible and intangible such as real estate and intellectual property.

EBITDA as a Financial Metric

Many experts considered EBITDA as a financial metric as it tells a firm’s operating profit without taking into account things like equipment, property and investment amount.

However, it is often used to cover the poor financial judgment. With all these aspects, it is still considered as an important financial metric.

EBITDA Vs EBIT

EBITDA and EBIT are very much similar to each other. The only difference is that EBITDA includes Interest, Tax, Depreciation and Amortization whereas EBIT includes only Interest and tax. EBITDA is mainly used to compare different companies while EBIT is used to evaluate the profitability of a single company.

EBIT gives you complete information regarding a company’s operational health without the loss of money for Interest and Tax, however, it excludes a portion of money which is spent on Amortization and Depreciation.

How to Calculate EBITDA?

The formula for calculating EBITDA is given below:

EBITDA = Net Income + Interest Expense + Taxes + Depreciation + Amortization

Steps to Measure EBITDA

1) Acquire the Business Income Statement

An income statement simply means a document which depicts a business’s overall revenue and costs in different periods such as a fiscal quarter or a year. Income statements can be categorized into 2 categories: such as revenue and expenses. These categories can be subdivided into different categories such as specific earnings or costs.

2) Find out Figures

All the figures that can be used to calculate the EBITDA are present in the income statement. Now, you need to find interest expenses and taxes. This will be counted as a non-operating subcategory of the expense category. After that, you are required to write depreciation and amortization numbers.

3) Calculate EBITDA

The calculation of EBITDA can be done as:

Net Income + Tax + Interest Expense + Depreciation and Amortization

What is EBITDA Margin?

EBITDA margin shows the cash profit a firm can generate in a year. The calculation of margin can be more useful if analysts compare a firm’s performance to its competitors.

The formula of EBITDA is:

EBITDA Margin = EBITDA/ Aggregate Revenue

The EBITDA of XYZ is Rs 7,00,000 while the aggregate revenue for the same is Rs 70,00,000. A second company called DEF’s EBITDA is registered as Rs 8,00,000, while its aggregate revenue is 85,00,000.

According to the formula discussed above:

EBITDA Margin of Company XYZ Ltd is 7,00,000/70,00000 = 10%

EBITDA Margin of company DEF Ltd is 800000/8500000 = 9.41%

When One Can Use EBITDA?

EBITDA can be used in the following business activities:

Budgeting

If you want to add the cost of extra machinery in your next year’s budget plan, EBITDA will come into play as it will tell you the overall company’s financial health along with the right timings regarding the addition of extra expense.

Downsizing

If you want to downsize your staff but get confused about your decisions, EBITDA analysis will help you make decisions objectively, not subjectively.

Investing

Let's say you've had your eye on a firm and are considering investing. The EBITDA may help you determine whether the firm has high growth potential, especially when compared to comparable companies, and whether or not joining the team is beneficial.

Forming an Exit Strategy

If you're ready to retire from your firm and want to sell it, and EBITDA analysis can show buyers that it's a good investment and help you choose the right asking price.

Conclusion

EBITDA is used to measure a company’s overall financial performance. Analysts use it as an alternative to the net income in some circumstances.

Tax is something that every individual has to pay whether on the income earned or the business involved. Taxes are compulsory contributions that are applied to individuals or corporations by government entities.

By collecting taxes from the public, the government uses the amount collected in public services such as building roads, schools, medicare and more.

The tax applies to many things. You normally pay tax on income earned, but many of you don't know that tax can be applicable to selling capital assets. In addition to this, if someone made gains from transferring capital assets, that can also be subject to gains tax.

In this blog, we will discuss the capital gain tax in India.

What is Capital Gain?

The profit or benefit you earned by selling a capital asset is known as a capital gain. The profit you made from the capital asset is of two types: Short Term Capital Gains and Long Term Capital Gains.

These gains heavily depend on the duration of the assets that come under your category.

Let’s know the conditions when you are required to pay capital gains:

1. If you sold an asset that comes under the category of a capital asset.
2. If you did sales and made some profit out of it.
3. The sale is made in the previous year (immediately before the assessment year)

What’s Included in Capital Gains?

1. Property

It includes both tangible and intangible properties.

• Tangible properties can be:
• Building
• Machine
• Land

Intangible properties include:

• Patent
• Trademark
• Lease Rights

2. Securities

The securities that FIIs hold under the rules of SEBI.

Assets that are not Included under capital assets:

1. The raw material that is used in the business, as well as the stock, is used in any business or profession.
2. Items used for daily use such as clothing, footwear, utensils etc.
3. Household items such as movable furniture, personal vehicles etc.
4. Agriculture land is located in the rural part of India.
5. Gold bonds are issued by the government.

What are Short Term Capital Gains and Long Term Capital Gains?

Capital gains come in two types: Short Term Capital Gains and Long Term Capital Gains. Since short term capital gains are not subject to security transaction tax are added to your income and then taxed as per the income tax slabs.

If the gains come under the scope of securities transaction tax, then a 15% of taxation is applied to a surcharge and education cess. However, a Long Term Capital Gain attracts a 20% tax in addition to a surcharge and education cess.

Short Term Capital Assets

A capital asset which you hold for 36 months can be called a short term capital asset.

There are other specific assets whose holding period can be lowered to 24 months or 12 months.

Exceptions

Short term assets generally have criteria of holding for 24 months.

Examples are: Unlisted shares

Immovable properties such as buildings, land and house.

Note: If you exceed the holding period for more than 24 months, a Long Term Capital Gain would be applied.

Short Term assets Have a Holding Period of 12 months.

Equity shares that are listed on the Indian Stock Exchange

Units from UTI

Zero-Coupon Bonds

Government Securities and Debentures are listed on the stock market in India.

Long Term Capital Assets

Capital assets which you can hold for more than 36 months can be classified as long term capital assets. Mobile assets for instance jewellery, if held for 36 months, will be considered long term assets.

What is Long Term Capital Gain Tax (LTCG)

Long Term Capital Gains refer to the profit that you make from an investment for a long period. LTCG can be held for 1-3 years.

These gains are eligible to be taxed under the Income Tax Act called Long Term Capital Gain Tax.

Long term capital gains for debt and equity funds are very different. As equity funds have no tax on long term gains, debt funds have a 20% tax with indexation.

There is no tax exemption on Short Term Capital Gain Tax, Long Term Capital Gain Tax are subject to tax deductions. This shows that you can save money on Long Term Capital Gain Tax by applying certain rules which come under Income Tax Act.

If you want to get an exemption from paying capital gain tax is the reinvestment of the amount received from the sale of the property.

Take a look at the three main exemptions for long term capital gain:

Section 54: This includes the long term capital gain on the sale of a house and the reinvestment of the amount received on the other house.

Section 54EC: Long term capital gains on the sale of a house and reib=vest the amount received in bonds.

Section 54F: This relates to long-term capital gains on the sale of any asset other than a home and the reinvestment of the proceeds in the purchase of a home.

Capital Gains Account Scheme

You can deposit long-term capital gains in a CAGS account if you cannot invest them within the prescribed time frame. The funds must be used within a certain time frame to construct or purchase another residential property.