You don’t need to go green with jealousy of the investors who made stellar gains on Alibaba shares. You can now own these stocks as well without going abroad. International brokers are offering Indians an opportunity to take advantage of global stocks. They are either working on their own or through a tie-up with Indian broking firms to provide this service.
You can buy any listed global stock online by simply opening an overseas trading account. An Indian investor can purchase stocks that are listed not only on US stock exchanges but also those across more than 24 countries. The reason behind providing this opportunity to Indians is the fact that among global markets, equity markets have active participation of Indian investors.
However, you should take taxation rules regarding foreign investments into consideration. Gains from Indian stocks, if held for more than a year, are exempt from taxes. But, the profit made from investment in international shares are not exempt from taxes. Mr Vaibhav Sankla, Director, H&R Block says that the profits earned by the sale of shares within 36 months will be taxed at marginal rate. He further adds that profit on foreign stocks sold after 3 years will be taxes at 20% plus surcharge and education cess.
Similarly, investing in global shares can bring its own set of difficulties. Your gains can be wiped out because of the depreciation of Indian currency. Weigh your options properly and invest in, if you cannot visit global places.
Source : DNA India