Stocks to buy in Feb/March 2011

1. Fortis Healthcare , Cairn India ( one of the highest expected revenue growth %)
2. Prakash Industries, Patel Engineering ( Least expensive stocs)
3. Shipping Corp of India, Gateway Distriparks,ONGC,Great Eastern Shipping Company,NIIT Tech ( Highest Divident)

Saving number rules

1. Rule of 72
    Number of years takes to double the money = 72/Interest
    Eg. 72/8= 9 years ( So in 9 years with 8% interest rate your money might double)
2. Rule of 114
    Number of years takes to triple the money = 72/Interest
    Eg. 114/8= 14.25 years ( So in 14.25 years with 8% interest rate your money might triple)
3. How much net worth you should have
    Age * Pre-tax income
   ------------------------ = Net worth
                10

Using Inflation to bring down capital gains tax

You could save tax on your long term gains if you opt for cost inflation indexation.

Example-
Property bought in 2001 for Rs 1Lakh.
Sold in 2011 for Rs 10 Lakh.

Without using cost inflation-
Gain = 10Lakh-1Lakh=9Lakh.
Tax = 10% of gain



With using Cost Inflation-
Gain= 10 Lakh - (1Lakh*Cost Inflation for year 2011)/Cost Inflation for year 2001
         which comes out to be less than 9 Lakh.
Tax= 20% of gain

So, overall gain is much less and you have to pay less tax ( varies from case to case)

Are you a Consultant?

Check out following to examine merits and demerits of being working as Consultant in India-

Benefits-

1. Better Compensation.
2. Better take home salary.
3. Depreciation on assets-
1. Vehicle
2. Furniture
3. Office Furniture etc

Following expenses can be deducted from Salary-

1. Rent
2. Fuel
3. Commuting
4. Equipment maintenance
5. Telephone/Internet bills
6. Interest on vehicle loan
7. Vehicle Insurance
8. Courier Expenses
9. New papers, books etc
10. Salary to driver etc.