A 🧵on why Vaidy of IDFC First Bank would want to gift his house help shares. It's an interesting tax thing. And a way to get goodwill (though there are some negative points)
Context: this note by IDFC First Bank yesterday that said Vaidy has donated 900,000 shares to his house and office help, to help them buy houses: 
Vaidy could have done it another way. Could have sold the shares, paid 10% tax on the profit and then pay the remaining to his help.
He'd also have to explain to hajaar people about why he did this, and then saying giving to help etc. sounds like a weak excuse (like "charity")
He'd also have to explain to hajaar people about why he did this, and then saying giving to help etc. sounds like a weak excuse (like "charity")
Instead, he gives them his shares. His gift is bigger in size - and they pay tax. When they sell the shares, they have to also pay the capital gains tax on the profit, but that can be offset by the house they purchase (LTCG can be offset by a house purchase!)
Additionally, he gets the goodwill of having donated shares. This is a decently large percentage of his current ownership (about 2.28 cr. shares) - how many of you have given 3-4% of your net worth to anyone as help?
What I'd suggest is not to reveal names. Privacy issues.
What I'd suggest is not to reveal names. Privacy issues.
Btw nothing wrong with this at all, everyone has a right to do what they want with their money
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