Pursuant to my last note on why you should not hold onto stock options in the company you work with, I would like to present more compelling reasons !!!
When you sell stock options in a foreign company after holding them for any period of time, you have to pay a standard 33% tax on the proceeds. Take the money out when the price if reasonable, buy Indian stocks of good companies, hold them for a year and viola, the entire profits are your to keep and the Indian taxman will not ask for any part of that profits.
Long term capital gains on stocks listed in Indian exchanges are fully tax free. And there is no reason to believe that a Oracle, a Cisco, a Microsoft or a Adobe systems will do any better than a Reliance Industries, Tata Motors, State bank of India or Bharti Airtel. Indian companies are just starting to blossom and this is the best time to cash in on this boom.
And if you do not have the guts and the appetite to invest directly in India companies, go the mutual fund route. Pick up cap mutual funds like Reliance Vision and HDFC Equity fund and there is every chance that you will end up making a lot of money.
And nothing beats tax free money !!!
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