QIB: 0.32 times
HNI: 0.49 times
Retail: 5.59 times
Employees: 0.57 times
Overall: 2.11 times
HNI: 0.49 times
Retail: 5.59 times
Employees: 0.57 times
Overall: 2.11 times
Thursday, June 21, 2018
Wednesday, June 13, 2018
Bharat 22 ETF Further Fund Offer Details
Anchor:19th June 2018
Non-Anchor:20th June 2018 to 22nd June 2018
Bharat 22 Fund of Fund (FOF for non-Demat investors) for Retail Category Only.
From 19th June to 22nd June 2018.
Discount: 2.5%
Base issue size:Rs 6000 crs with green shoe option
8:34:00 AM
Indian IPO Blog
Bharat 22, Bharat 22 ETF, IPO in 2018, Latest IPO News
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Friday, May 11, 2018
Sunday, March 25, 2018
Friday, March 9, 2018
Hindustan Aeronautics IPO Details
Issue Dates : *16th to 20th March*
Issue Price : *Rs. 1215 to Rs1240*
Retail & Employee Discount : *RS. 25 Per Share*
Lot Size : *12 Shares*
Issue Size (shares) : *3,41,07,525*
Issue Size (Amount) :*4229.33 Crores*
Employee Reservation :
*668,775 Shares*
Net Issue Size : *3,34,38,750 Shares*
Allocation:
*QIB - 50%*
*NII - 15%*
*Retail - 35%*
Thursday, February 15, 2018
Tuesday, February 6, 2018
Click here to check status now
Monday, February 5, 2018
Frequently Asked Questions (FAQs) regarding taxation of long-term capital gains proposed in Finance Bill, 2018
Under the existing regime, long term capital gains arising from transfer of long term capital assets, being equity shares of a company or a unit of equity oriented fund or a unit of business trust, is exempt from income-tax under clause (38) of section 10 of the Act.
However, transactions in such long-term capital assets are liable to securities transaction tax (STT). Consequently, this regime is inherently biased against manufacturing and has encouraged diversion of investment to financial assets. It has also led to significant erosion in the tax base resulting in revenue loss. The problem has been further compounded by abusive use of tax arbitrage opportunities created by these exemptions.
2. In order to minimise economic distortions and curb erosion of tax base, it is proposed to withdraw the exemption under clause (38) of section 10 and to introduce a new section 112A in the Income-tax Act, 1961 (‘the Act’) vide clause 31 of the Finance Bill, 2018 so as to provide that long-term capital gains arising from transfer of such long-term capital asset exceeding one lakh rupees will be taxed at a concessional rate of 10 percent.
3. Since the introduction of the Finance Bill, 2018 on 1st February, 2018, several querieshave been raised in different fora on various issues relating to the proposed new tax regime for taxation of long-term capital gains. The responses to these queries are provided below.
Q 1. What is the meaning of long term capital gains under the new tax regime forlong term capital gains?
Ans 1. Long term capital gains mean gains arising from the transfer of long-term capital asset. The Finance Bill, 2018 proposes to provide for a new long-term capital gains tax regime for the following assets–
i. Equity Shares in a company listed on a recognised stock exchange;
ii. Unit of an equity oriented fund; and
iii. Unit of a business trust.
The proposed regime applies to the above assets, if
a. assets are held for a minimum period of twelve months from the date of acquisition; and
b. the Securities Transaction Tax (STT) is paid at the time of transfer. However,
in the case of equity shares acquired after 1.10.2004, STT is required to be
paid even at the time of acquisition (subject to notified exemptions).
Q 2. What are the modes of acquisition of equity shares which are proposed to be
exempted from the condition of payment of STT?
Ans 2. The Central Government had exempted certain modes of acquisition of equity shares for the purposes of clause (38) of section 10 of the Act vide notification no. 43/2017 dated 5th of June, 2017. This notification is proposed to be reiterated for the purposes of clause 31 of the Finance Bill, 2018 after its enactment.
Q 3. What is the point of chargeability of the tax?
Ans 3. The tax will be levied only upon transfer of the long-term capital asset on or after 1st April, 2018, as defined in clause (47) of section 2 of the Act.
Q 4. What is the method for calculation of long-term capital gains?
Ans 4. The long-term capital gains will be computed by deducting the cost of acquisition
from the full value of consideration on transfer of the long-term capital asset.
Q 5. How do we determine the cost of acquisition for assets acquired on or before 31st January, 2018?
Ans 5. The cost of acquisition for the long-term capital asset acquired on or before 31st of January, 2018 will be the actual cost. However, if the actual cost is less than the fair market value of such asset as on 31st of January, 2018, the fair market value will be deemed to be the cost of acquisition.
Further, if the full value of consideration on transfer is less than the fair market
value, then such full value of consideration or the actual cost, whichever is higher, will be deemed to be the cost of acquisition.
Q 6. How will the fair market value be determined?
Ans 6. In case of a listed equity share or unit, the fair market value means the highest price of such share or unit quoted on a recognized stock exchange on 31st of January, 2018.
However, if there is no trading on 31st January, 2018, the fair market value will be the highest price quoted on a date immediately preceding 31st of January, 2018, on which it has been traded
In the case of unlisted unit, the net asset value of such unit on 31st of January,
2018 will be the fair market value.
Q 7. Please provide illustrations for computing long-term capital gains in different scenarios, in the light of answers to questions 5 and 6.
Ans 7. The computation of long-term capital gains in different scenarios is illustrated as under -
Scenario 1 – An equity share is acquired on 1st of January, 2017 at Rs. 100, its fair market value is Rs. 200 on 31st of January, 2018 and it is sold on 1st of April, 2018 at Rs. 250.
As the actual cost of acquisition is less than the fair market value as on 31st of
January, 2018, the fair market value of Rs. 200 will be taken as the cost of acquisition and the long-term capital gain will be Rs. 50 (Rs. 250 – Rs. 200).
Scenario 2 – An equity share is acquired on 1st of January, 2017 at Rs. 100, its fair market value is Rs. 200 on 31st of January, 2018 and it is sold on 1st of April, 2018 at Rs. 150.
In this case, the actual cost of acquisition is less than the fair market value as on
31st of January, 2018. However, the sale value is also less than the fair market
value as on 31st of January, 2018. Accordingly, the sale value of Rs. 150 will be taken as the cost of acquisition and the long-term capital gain will be NIL (Rs. 150 – Rs. 150).
Scenario 3 – An equity share is acquired on 1st of January, 2017 at Rs. 100, its fair market value is Rs. 50 on 31st of January, 2018 and it is sold on 1st of April, 2018 at Rs. 150.
In this case, the fair market value as on 31st of January, 2018 is less than the actual cost of acquisition, and therefore, the actual cost of Rs. 100 will be taken as actual cost of acquisition and the long-term capital gain will be Rs. 50 (Rs. 150 – Rs. 100).
Scenario 4 – An equity share is acquired on 1st of January, 2017 at Rs. 100, its fair market value is Rs. 200 on 31st of January, 2018 and it is sold on 1st of April, 2018 at Rs. 50.
In this case, the actual cost of acquisition is less than the fair market value as on
31st January, 2018. The sale value is less than the fair market value as on 31st of
January, 2018 and also the actual cost of acquisition. Therefore, the actual cost of
Rs. 100 will be taken as the cost of acquisition in this case. Hence, the long-termcapital loss will be Rs. 50 (Rs. 50 – Rs. 100) in this case.
Q8. Whether the cost of acquisition will be inflation indexed?
Ans 8. Sub-clause (5) of clause 31 of the Finance Bill, 2018, inter alia, provides that the long-term capital gain will be computed without giving effect to the provisions of the second provisos of section 48. Accordingly, it is clarified that the benefit of inflation indexation of the cost of acquisition would not be available for computing long-term capital gains under the new tax regime.
Q 9. What is the date of commencement of the proposed new tax regime?
Ans 9. The proposed new tax regime will apply to transfer made on or after 1st April, 2018. The existing regime providing exemption under clause (38) of section 10 of the Act will continue to be available for transfer made on or before 31st March, 2018.
Q 10. What will be the tax treatment of accrued gains upto 31st January 2018?
Ans 10. As the fair market value on 31st January, 2018 will be taken as cost of acquisition (except in some typical situations explained in Ans 7.), the gains accrued upto 31stJanuary, 2018 will continue to be exempt.
Q 11. What will be the tax treatment of transfer of share or unit between 1
st February 2018 to 31st March 2018?
Ans 11. As replied in answer 9, the new tax regime will be applicable to transfer made on or after 1st April, 2018, the transfer made between 1st February, 2018 and 31stMarch, 2018 will be eligible for exemption under clause (38) of section 10 of the Act.
Q 12. What will be the tax treatment of transfer made on or after 1
st April 2018?
Ans 12. The long-term capital gains exceeding Rs. 1 Lakh arising from transfer of these asset made on after 1st April, 2018 will be taxed at 10 per cent.
However, there will be no tax on gains accrued upto 31st January, 2018 as explained in Ans 10.
Q13. What is the date from which the holding period will be counted?
Ans 13. The holding period will be counted from the date of acquisition.
Q 14. Whether tax will be deducted at source in case of gains by resident tax payer?
Ans 14. No. There will be no deduction of tax at source from the payment of long-term capital gains to a resident tax payer.
Q 15. Whether tax will be deducted at source in case of payment of long-term capital gains by non-resident tax payer (other than a Foreign Institutional Investor)?
Ans 15. Ordinarily, under section 195 of the Act, tax is required to be deducted on
payments made to non-residents, at the rates prescribed in Part-II of the First Schedule to the Finance Act. The rate of deduction in the case of capital gains is
also provided therein. In terms of the said provisions, tax at the rate of 10 per cent. will be deducted from payment of long-term capital gains to a non-resident
tax payer (other than a ForeignInstitutional Investor). The capital gains will be required to be computed in accordance with clause 31 of the Finance Bill, 2018.
Q 16. Whether tax will be deducted at source in case of payment of long-term capital gains by Foreign Institutional Investors (FIIs)?
Ans 16. No. There will be no deduction of tax at source from payment of long-term capital
gains to a Foreign Institutional Investor in view of the provisions of sub-section (2)
of section 196D of the Act.
Q17. How will the gains in the case of FIIs be determined?
Ans 17. The long-term capital gains in case of FIIs will be determined in the same manner
as explained in earlier answers in the case of resident tax payers.
Q 18. What will be the treatment of the gains accrued upto 31st January 2018 in the case of FIIs?
Ans 18. In case of FIIs also, there will be no tax on gains accrued upto 31st January, 2018 as explained in Ans 10.
Q 19. What will be the tax treatment of transfer of share or unit between 1st February 2018 to 31st March 2018 in the case of FIIs?
Ans 19. As explained in Ans 11, in case of FIIs also, the transfer made between 1st
February, 2018 and 31st March, 2018 will be eligible for exemption under clause
(38) of section 10 of the Act.
Q 20. What will be the tax treatment of transfer made on or after 1st April 2018 in case of FIIs?
Ans 20. As explained in Ans 12, in case of FIIs also, the long-term capital gains exceeding Rs. 1 Lakh arising from transfer of these asset made on after 1st April, 2018 will be taxed at 10 per cent. However, there will be no tax on gains accrued upto 31stJanuary, 2018 as explained in Ans 10.
Q21. What will be the cost of acquisition in the case of bonus shares acquired before1st February 2018?
Ans 21. The cost of acquisition of bonus shares acquired before 31st January, 2018 will be determined as per sub-clause (6) of clause 31 of the Finance Bill, 2018. Therefore, the fair market value of the bonus shares as on 31st January, 2018 will be taken as cost of acquisition (except in some typical situations explained in Ans 7), and hence, the gains accrued upto 31st January, 2018 will continue to be exempt
Q 22. What will be the cost of acquisition in the case of right share acquired before 1st
February 2018?
Ans 22. The cost of acquisition of right share acquired before 31st January, 2018 will be
determined as per sub-clause (6) of clause 31 of the Finance Bill, 2018. Therefore,
the fair market value of right share as on 31st January, 2018 will be taken as cost
of acquisition (except in some typical situations explained in Ans 7), and hence,
the gains accrued upto 31st January, 2018 will continue to be exempt.
Q 23. What will be the treatment of long-term capital loss arising from transfer made
between 1st February, 2018 and 31st March, 2018?
Ans 23. As the exemption from long-term capital gains under clause (38) of section 10 will
be available for transfer made between 1st February, 2018 and 31st March, 2018,
the long-term capital loss arising during this period will not be allowed to be setoff or carried forward.
Q 24. What will be the treatment of long-term capital loss arising from transfer made
on or after 1st April, 2018?
Ans 24. Long-term capital loss arising from transfer made on or after 1st April, 2018 will be
allowed to be set-off and carried forward in accordance with existing provisions
of the Act. Therefore, it can be set-off against any other long-term capital gains
and unabsorbed loss can be carried forward to subsequent eight years for set-off
against long-term capital gains
- 9:13:00 AM
- Indian IPO Blog
- Budget 2018
- No comments
Thursday, February 1, 2018
Mr. Jaitley in his budget speech mentioned grandfathering as a concept with reference to computation of Long Term Capital Gain on which he has introduced tax at 10 percent
However there can be lot of confusion with respect to this concept. Let's understand this concept simply
If you bought any share last year (and not completed 1 year) - your revised cost will be yesterday high price and not actual price. So LTCG will be applicable at price what u sell from now on compared with revised cost on 31st Jan
Understanding LTCG Tax under Grandfathering concept with simple example
Suppose you buy Stock A at Rs 100 on 31Jan 2017 or before
High of stock (not closing price) on 31Jan 2018 = Rs 220
You sell Stock A at Rs 240 on 1st Feb 2018 or after
Your Tax Liability = Rs 20/share (10%) if total profit is higher than 1 lakh
- 4:45:00 PM
- Indian IPO Blog
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Immediate update on direct tax changes from the budget speech -
1. Real estate – double taxation in respect of immovable property. No adjustment where 5% difference is there.
2. MSME – Corporate tax rate 25% to companies having T/o under Rs. 250 crore in FY 2016-17. Revenue foregone Rs. 7000 crore FY 18-19.
3. Salaried tax payers – No changes in structure. Salaried taxpayer – standard deduction of Rs. 40,000/- in lieu of transport and reimbursement of medical expenses.
4. Senior citizens – exemption of interest income from FD / RD increased to Rs. 50,000. No TDS u/s 194A for this. Health insurance deduction from Rs. 30,000 to Rs. 50,000.
5. Rs. 1,00,000/- deduction u/s 80DDB for critical illnesses for senior and very senior citizens
6. Payment exceeding Rs. 10,000 in cash disallowed for Trusts. Non-deduction of TDS would be disallowed @ 30%
7. LTCG tax – Tax LTCG exceeding Rs. 1,00,000/- @ 10% w/o indexation. All gains upto 31.1.18 grand fathered. STCG normal 15%. Tax on distributed income by EOF @ 15%.
8. Increase cess by 1%. Total cess @ 4% health and education cess
9. E assessment – to be expanded
- 1:21:00 PM
- Indian IPO Blog
- Budget 2018, Budget highlights
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Government launches world's largest health care programme:
Government will contribute 12 per cent of wages of all new members of EPFO across sectors for 3 years:
Propose an outlay of Rs 7140 crore for the textile sector
Have decided to take healthcare protection to a new aspirational level. Launching a flagship National Health Protection Scheme to cover 10 crore poor and vulnerable families, benefiting approx. 50 crore,
National Health Protection Scheme for 10 crore poor families to get a coverage of Rs 5 lakh per family annually. The scheme may be extended to cover more people if successful
Higher allocation to infra capital expenditure in the Budget can be a boost to rural roads construction –
Scheme for revitalizing school infrastructure, with an allocation of 1 lakh crore rupees over four years. Called RISE - Revitalizing Infrastructure in School Education:
By 2022, every block with more than 50% ST population and at least 20,000 tribal people will have 'Ekalavya' school at par with Navodaya Vidyalas
This will be the world's largest government-funded health care programme covering 10 crore poor families, 50 crore beneficiaries - providing them up to Rs5 lakh per family per year for hospitalization
4400 villages along the Ganga river have been declared Open Defecation Free:
In a bid to take healthcare protection to a new aspirational level arunjaitley allocates 1200 cr for better healthcare facilities
Govt to allocate Rs. 600 cr to provide nutritional support to all TB patients at Rs.500/mth during treatment.
Allocate Rs 2,600 Cr Under Ground Water Irrigation Plan In 96 Districts
FM Says Propose To Earmark Rs 56,000 Cr For SCs & Rs 39,000 Cr For STs
Government proposes to allot Rs 3794 crore for MSME sector: Finance Minister
Government allocates Rs 3 lakh crore for lending under the Mudra scheme:
Finance Minister says Allocate Rs 1.38 lk cr in FY19 for govt health & education programmes; Will soon announce measures for SME NPAs
10 cr families will be provided Rs 5 lakh cover per family per year for treatment under National Health Protection scheme.
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