The comments come a day after capital markets regulator Sebi expressed concerns over the sluggish IPO activity, despite it already clearing over Rs 60,000 crore worth of issues
Wednesday, December 19, 2018
Kotak IB believes IPO markets may remain muted till elections
The comments come a day after capital markets regulator Sebi expressed concerns over the sluggish IPO activity, despite it already clearing over Rs 60,000 crore worth of issues
Tuesday, December 18, 2018
Studds Accessories IPO gets SEBI approval
The company, which had filed its draft papers with the markets regulator in August seeking its clearance for the initial public offer (IPO), obtained Sebi’s observations on December 14, latest data with the capital markets watchdog showed.
Sebi’s observations are necessary for any company to launch public issues like initial public offer, follow-on public offer and rights issue.
Studds Accessories’ IPO comprises fresh issuance of shares worth ₹98 crore besides an offer-for-sale of 39.39 lakh equity shares by promoters Madhu Bhushan Khurana and Sidhartha Bhushan Khurana, and other existing shareholders, according to the draft papers.
With IPO market dried up, SEBI asks bankers to price it right
Last year was the best in terms of IPO fund raising, as the IPO market jumped to an all-time record of Rs 67,147.4 crore in fresh fund raising by over 120 companies, according to data from Prime Database.
When asked if the issue is pricing, he asked i-bankers to do more "diligence" while setting a price that will be acceptable to both the issuers as well as investors.
"Merchant bankers have a role to see that an issue is reasonably priced and which is acceptable to both issuers and investors," Tyagi said.
The Sebi chief seemed to suggest that domestic market conditions are better as compared to global peers, with firm macroeconomic fundamentals and said the rupee fall has also been arrested.
Tuesday, September 18, 2018
SEBI pushes to lower IPO Listing timeline to T+3 days
SEBI chairman Ajay Tyagi announced the decision in a press conference after a board meeting in Mumbai.
Currently, a company has to wait for six days after the closure of IPO to get listed on exchanges. The new regulation is expected to further bring down investors exposure to market volatility.
"We have been able to bring down the issue timing from T+12 to T+6 and I would like to mention that all of us have to start working now to further reduce the issue timing," Sebi chairman UK Sinha had said while addressing the annual capital market conference by Federation of Indian Chambers of Commerce and Industry in October 2016.
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Monday, September 17, 2018
Aavas Financiers IPO Detailed Info
*Aavas Financiers Limited IPO*
◆ Open Date: *Sep 25, 2018*
◆ Close Date: *Sep 27, 2018*
◆ Allotment Date: *Oct 03, 2018*
◆ Listing Date: *Oct 08, 2018*
◆ Face Value: Rs 10 Per Equity Share
◆ Issue Price: *Rs 818/- to Rs 821/-* Per Equity Share
◆ Issue Size: 21,121,437 Equity Shares of Rs 10/- Aggregating up to Rs 1734.07 Cr
◆ Market Lot (Min Amount): *18 Shares (Rs 14,778/-)*
◆ Listing At: NSE, BSE
◆ Registrar: Link Intime India Private Limited
◆ Lead Manager: Citigroup Global Markets India Private Ltd, Edelweiss Capital Ltd, HDFC Bank Ltd, ICICI Securities Ltd, Spark Capital Advisor Private Ltd.
◆ EPS: *Rs 15.20/-*
◆ P/E Ratio: *54.01*
◆ RoNW: *8.46%*
◆ Net Asset Value (NAV): *Rs 157.03*
◆ Promoters: *Lake District Holdings Ltd & Partners Gorup ESCL Ltd*
Sunday, September 16, 2018
Aavas Financiers IPO opens from Sep 25
Friday, September 7, 2018
IRCON International IPO Dates and schedule
◆ Listing At (Group): NSE, BSE (B - Group)
Thursday, September 6, 2018
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Wednesday, September 5, 2018
Angel Broking files DRHP for IPO
Angel Broking Limited, one of the largest independent full-service retail broking house in India in terms of active clients on NSE as of July 31, 2018 (Source: CRISIL Report) filed its DRHP with SEBI.
The Initial Public Offer (IPO) comprises of equity shares of face value of Rs. 10 each (“EquityShares”) of Angel Broking Limited (“Company”) aggregating up to Rs. 6,000.00 million. The IPO includes fresh issue aggregating up to Rs. 3,000.00 million (the “Fresh Issue”)and an offer for sale aggregating up to Rs. 208.35 million by Ashok D. Thakkar and equity shares aggregating up to Rs. 31.25 million by Sunita A. Magnani (together, the“Promoter Selling Shareholders”),equity shares aggregating up to Rs. 1,200.02 million by IFC (the“Investor Selling Shareholder”) and equity shares aggregating up to Rs. 1,560.38 million by the individual selling shareholders (together with the promoter selling shareholders and the investor selling shareholder, the “Selling Shareholders”) aggregating up to Rs. 3,000.00 million (the “Offer For Sale”)
The proceeds from the net issue will be utilized towards: (i). to meet working capital requirements (Rs. 2,300 million); and (ii) for general corporate purposes.
ICICI Securities Limited, Edelweiss Financial Services Limited and SBI Capital Markets Limited are the book running lead managers to the issue.
The equity shares will be listed on BSE and NSE.
About Angel Broking Limited
Angel Broking Limited (Angel) is one of the largest independent full-service retail broking house in India in terms of active clients on NSE as of July 31, 2018 (Source: CRISIL Report). Angel is a technology led financial services company, that provides broking and advisory services, margin funding, loans against shares (through one of our Subsidiaries, AFPL) and financialproducts distribution to clients under the brand “Angel Broking”. Angel’s broking services are offered through (i) online and digital platforms, and (ii) network of more than 11,000 sub-brokers, as of June 30, 2018. They have more than 850,000 downloads ofAngel Broking mobile app and more than 450,000 downloads of Angel BEE app as of June 30, 2018, which enables their clients to avail services digitally. Through network of sub-brokers and over 110 branches, Angel have a pan-India presence across 1,800 cities and towns, as of June 30, 2018. As at June 30, 2018, Company managed Rs. 113,023.06 million in client assets and over 1.11 million active broking accounts.
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Wednesday, August 8, 2018
Creditaccess Grameen IPO opens - Should you apply? Brokerage Analysts Recommendations
Monday, August 6, 2018
HDFC AMC IPO lists with a big bang premium
The shares under the IPO were offered at Rs.1100 a piece and the issue was oversubscribed more than 80 times
HDFC AMC is the second asset management company to hit the market after Reliance Nippon Life AMC, which had raised Rs 1,542 crore last year.
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Friday, August 3, 2018
Congratulations! We've crossed 5000 members on Indian IPO Blog Whatsapp Groups!
We're more than 5000 on Indian IPO Blog Whatsapp Groups now!
On behalf of the team at Indian IPO Blog, would like to extend a warm vote of thanks to each and every one of you for achieving this amazing milestone. At the same time, would also like to extend gratitude to my co-admins and the team at Indian IPO Blog for their continued support and faith
At Indian IPO Blog, we believe each of our members are equal partners in building the community and therefore expect highest professional standards from our members. Although members are encouraged to introduce and refer genuinely interested newer members to the group, it is also expected that the seat be valued and adherence to group guidelines is ensured
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Thursday, August 2, 2018
How to check HDFC AMC IPO Allotment status
HDFC AMC IPO Allotment Status declared
HDFC AMC IPO Allotment status update
*Indian IPO Blog: HDFC AMC IPO Allotment Status update*
There is lot of buzz about the HDFC AMC IPO Allotment status. Members may note that the allotment status is being uploaded on registrar's site
The same is expected to be declared very shortly now
Many banks have already started debiting and releasing the amount. Hence members may make out their allotment status by checking if they have received debit message or amount has been released in your bank account from lien,
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HDFC AMC IPO Allotment Status - Shareholder allotment
The applicants who have applied in shareholder category will get firm allotment in the minimum bid lot
For higher bid lot, 45 shares will be allotted against 169 shares applied
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HDFC AMC IPO Allotment status
HDFC AMC IPO Basis of Allotment
Wednesday, August 1, 2018
HDFC AMC IPO Allotment Status
RBI hikes repo rates by 25bps
HDFC AMC IPO Allotment status expected soon - however not declared yet
Allotment status for HDFC AMC IPO is not declared as yet. The same is expected to be out late hours tonight. Funds are expected to be released by tomorrow
The update on HDFC AMC IPO Allotment status would be posted at http://www.indianipoblog.in.
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Sunday, July 29, 2018
IPO pipeline strong in Indian markets - List of Upcoming IPOs
- Capricorn Food Products India Ltd
- Prince Pipes and Fittings Ltd
- Nazara Technologies
- Patel Infrastructure Limited
- John Energy Limited
- CMS Info Systems Limited
- Gandhar Oil Refinery Ltd
- Laqshya Media Ltd
- Genesis Colors Ltd
- Seaways Shipping and Logistics Ltd
- Barbeque Nation Hospitality Ltd
- IRCTC Ltd
- IRCON Ltd
- Rail Vikas Nigam Limited
- Go Air.
- ACME Solar Ltd
- Reliance General insurance Company Ltd
- Continental Warehousing Ltd
- Aakash Education Services
- Seven Islands Shipping Limited
- SREI Equipment Finance Limited
- Bharat Serum and Vaccines Limited
- PolicyBazaar.com
- GMR Airports Ltd
- National Stock Exchange (NSE)
- KIMS Hospitals
- Kalyan Jewellers
- Lite Bite Foods
- Indiamart.com
- Energy Efficiency Services Ltd
- National Insurance Company
- Vishwaraj Sugar Industries Ltd
- Indian Renewable Energy Development Agency Ltd
- Indian Railways Finance Corporation Ltd
- Rail Vikas Nigam Ltd (RVNL)
- UTI Mutual Fund Ltd
- Devi Seafoods Ltd
- Anmol Industries Ltd (Anmol Biscuits)
- ReNew Power Ltd
- Voila F9 Gourmet Ltd
- Route Mobile Limited
- Credit Access Grameen Ltd
- Sembcorp Energy India Ltd
- Flemingo Travel Retail Ltd
- Sandhya Marines Ltd NA
- Nekkanti Sea Foods Limited
- K P R Agrochem Limited
- Garden Reach Shipbuilders & Engineers Ltd
- Atria Convergence Technologies Ltd
- GR Infraprojects Ltd
- Mazagon Dock Shipbuilders Ltd
- Genius Consultants Limited
- Dinesh Engineers Limited
- Crystal Crop Protection Ltd
- Hinduja Leyland Finance Ltd
- PNB MetLife Insurance Ltd
- AnandRathi Wealth Management Ltd
- Aavas Financiers Ltd
- Shakun Polymers Ltd
- PN Gadgil & Sons Ltd
- Fino Payments Bank Ltd
- Montecarlo Ltd (Construction Company)
- Century Metal Recycling Ltd
- Chalet Hotels Ltd
- Dodla Dairy Ltd
- Craftsman Automation Ltd
- Penver Products Limited
- Spandana Sphoorty Financial Ltd
- Puranik Builders Ltd
Saturday, July 28, 2018
PNB Metlife to come up with an IPO
The offer is of up to 49,58,98,076 shares of face value of Rs 10 each by way of an offer for sale by the selling shareholders.
Friday, July 27, 2018
HDFC AMC IPO Final subscription figures
HDFC AMC IPO subscription status till Day 3 - 9 pm
QIB: 192.26x
HNI: 195.15x
Retail: 6.73x
Employees: 1.52x
Shareholders: 2.69x
Overall: 83.06 times
The IPO closed for subscription on Jul 27, 2018. Stay tuned to Indian IPO Blog for more on HDFC AMC IPO. Join Whatsapp group for Free for latest discussions
HDFC AMC IPO Subscription status as on Day 3 - 3PM
HDFC AMC IPO subscription status till Day 3 - 3 pm
QIB: 143.40x
HNI: 107.96x
Retail: 5.87x
Shareholders: 2.33x
Overall: 55.71 times
The IPO closes for subscription on Jul 27, 2018. Stay tuned to Indian IPO Blog for more on HDFC AMC IPO. Join Whatsapp group for Free for latest discussions
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HDFC AMC IPO subscription crosses 25 times till 1PM on closing day
HDFC AMC IPO subscription status till Day 3 - 12.50 pm
QIB: 46.64x
HNI: 65.81x
Retail: 5.04x
Employee: 3.93x
Shareholders: 2.05x
Overall: 25.17 times
The IPO closes for subscription on Jul 27, 2018. Stay tuned to Indian IPO Blog for more on HDFC AMC IPO. Join Whatsapp group for Free for latest discussions
Thursday, July 26, 2018
HDFC AMC IPO subscription status till Day 2
HDFC AMC IPO subscription status till Day 2
QIB: 5.89x
HNI: 13.91x
Retail: 3.50x
Employee: 1.03x
Shareholders: 1.40x
Overall: 5.52 times
The IPO closes for subscription on Jul 27, 2018. Stay tuned to Indian IPO Blog for more on HDFC AMC IPO. Join Whatsapp group for Free for latest discussions
Wednesday, July 25, 2018
HDFC AMC IPO Latest Grey Market Premium
The IPO closes for subscription on Jul 27, 2018. Stay tuned to Indian IPO Blog for more on HDFC AMC IPO. Join Whatsapp group for Free for latest discussions
HDFC AMC IPO subscribed fully on Day 1
The IPO of HDFC AMC Limited, the Mutual Fund business of HDFC, has been fully subscribed on Day 1 of its opening
The IPO got subscribed in different categories as under:
QIB: 1.19x
HNI: 0.55x
Retail: 1.34x
Employee: 0.54x
Shareholders: 0.60x
Overall: 1.03 times
The IPO closes for subscription on Jul 27, 2018. Stay tuned to Indian IPO Blog for more on HDFC AMC IPO. Join Whatsapp group for Free for latest discussions
You can apply twice in HDFC AMC IPO if you hold HDFC shares
Thursday, July 19, 2018
HDFC AMC IPO - Record date for HDFC shareholders
HDFC AMC IPO - Offer Size and Allocation
Friday, July 13, 2018
BSE adds Motabhai to help you know stock prices
- Current Price
- Corporate Announcements
- Corporate Actions
- Results
Thursday, July 12, 2018
Soon you may be able to apply IPOs using UPI!
Monday, July 9, 2018
HCL Technologies to consider Buyback
is scheduled to be held on Thursday, July 12, 2018, to consider a proposal for buy-
back of equity shares in accordance with applicable provisions of the Companies Act, 2013 and the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 1998"
Gear up for more SME IPO - Collections witness more than 2 times jump
Sunday, July 8, 2018
Earnings Calendar - July 2018
10 - TCS
13 - INFY
16 - HIND UNILEVER
17 - ASHOK LEYLAND
17 - FEDERAL BANK
17 - ZEEL
18 - BANDHAN BANK
18 - MIND TREE
18 - ULTRATECH CEMENT
19 - BAJAJ FINANCE
19 - BAJAJ FIN SERVE
19 - KOTAK BANK
19 - RBL BANK
20 - BAJAJ AUTO
20 - BATA INDIA
20 - HDFC LIFE
20 - WIPRO
21 - HDFC BANK
24 - ICICI PRU
25 - HEROMOTO CORP
25 - JSW STEEL
25 - TATA ELXI
26 - BIOCON
26 - DR. REDDY
27 - ICICI BANK
27 - M & M FINANCE
30 - GODREJ CONSUMER
30 - HDFC
30 - IDFC
30 - IDFC BANK
30 - TECH MAHINDRA
31 - DABUR.
Monday, July 2, 2018
SEBI asks HDFC AMC to cancel pre-IPO share sale
Sunday, July 1, 2018
HDFC AMC IPO Details
Thursday, June 28, 2018
RITES IPO Allotment Status
Thursday, June 21, 2018
Wednesday, June 13, 2018
Bharat 22 ETF Further Fund Offer Details
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
Friday, May 11, 2018
Sunday, March 25, 2018
Friday, March 9, 2018
Hindustan Aeronautics IPO Details
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
Monday, February 5, 2018
Tax on Long Term Capital Gains - FAQs
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
Thursday, February 1, 2018
Understanding Grandfathering concept under LTCG tax
Budget 2018 Highlights - Tax Impact
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
Budget 2018 Highlights - Government launches world's largest health care programme
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.
Union Budget 2018 Expectations
UNION BUDGET 2018 EXPECTATIONS
Taxation
■ FM could well relook the MAT rate or consider abolishing it altogether
■ Reduce corporate tax rate.
■ Enhance tax deductions, exemptions for individuals
■ Tax benefits for salaried class through standard deduction and revision of allowances
■ May tax long-term capital gains in stock market investments
■ Disallowance of expenses on which GST not paid.
Agriculture
■ Establish fund to guarantee credit to encourage investment in agriculture sector
■ Allocate more funds for crop insurance schemes
■ Increase spending for dams and canals, micro irrigation systems
■ Provide subsidies for building cold storage to avoid wastage of perishable crops
■ Reduce fertilizer subsidies
Banks
■ Allow full tax deduction for provisioning of non-performing assets (NPAs) at banks
■ Raise the threshold for tax deduction on interest paid on bank deposits from current Rs10,000
■ Reduce the tenure of tax-exempted retail term deposits to minimum of 3 years from current 5
■ Carve out tax provisions to streamline proceedings under Insolvency and Bankruptcy Code
Infrastructure
■ Increase investment by 10-15% in roads from Budget 2017
■ Provide support for key road projects, including Bharatmala project, which will connect western and eastern India
■ Increase railways investments by 10% from 2017/18 budget
Technology and IT sector
■ Provide greater incentives for digital transactions
■ Support digital payments infrastructure
Auto sector
■ Announce policy on scrapping commercial vehicles that do not comply with emission norms if operational for over 15 years
Real estate sector
■ Set single-window clearance for all real estate projects, especially housing to avoid execution and project delays
■ Give infrastructure status to real estate to help bring down finance, project costs, make homes more affordable
■ Reduce GST rate for under-construction real estate projects from current 12%
■ Spend more on affordable housing
Energy sector
■ Reduce “cess” duty to 8-10% from 20% for oil and gas exploration and production
■ Reduce or exempt city gas distribution companies from excise duty
■ Provide subsidy aid to downstream companies selling LPG, kerosene below market prices
Metals and mining sector
■ Decrease in basic customs duty on coking coal across grades
■ Decrease in export duty on iron ore above certain grade levels
■ Hike basic customs duty on aluminium scrap to protect domestic industry
Gold
■ Cut import tax on gold to 2-4% from 10% to prevent smuggling.
Finally, an interestingly timed Oxfam survey, suggests that, “the richest 1% of India cornered 73% of wealth generated last year,” has added to the apprehensions of wealthy people. It would be interesting to see whether the FM would want to toy with any thoughts on the introduction of inheritance tax, especially after two of the biggest initiatives of DeMo and GST.
…. over to Mr.Jaitley!
Wednesday, January 31, 2018
Sunday, January 28, 2018
InvestorFocus - Stock Recommendation - Long Term EICHER MOTORS
Scrip: Eicher Motors Limited
CMP: Rs.26,500
Recommendation: BUY
Horizon: Long Term (1 to 2 years)
Company Background
Eicher Motors Limited (EML) (BSE: 505200, NSE: EICHERMOT Bloomberg: EIM IN Reuters: EICH.NS) is the listed parent of Royal Enfield, the global leader in middleweight motorcycles. The world’s oldest motorcycle brand in continuous production, Royal Enfield has made its distinctive motorcycles since 1901. Focused on bringing back simple, yet engaging and accessible motorcycling, Royal Enfield operates in India, and over 40 countries around the world. With modern development facilities in Leicestershire, UK and Chennai, India, Royal Enfield makes its motorcycles in Tamil Nadu for the world
In addition to motorcycles, Eicher has a joint venture with Sweden’s AB Volvo - Volvo Eicher Commercial Vehicles Limited (VECV) - which is driving modernization in India's commercial vehicle space, and in other developing countries. VECV has a complete range of trucks and buses from 5-49 tonnes, and its integrated manufacturing plant in Pithampur, Madhya Pradesh is the global hub for medium duty five- and eight-litre engines for Volvo Group. Since 2012, Eicher has an equal joint venture with US-based Polaris Industries Inc - Eicher Polaris Private Limited - and introduced the Multix 3-in-1 vehicle
Financials
- The company has managed 593450 units of Royal Enfield which is quite impressive by any standard
- At FY18E earnings, the company would be trading at a PE ratio of around 33.5 which is substantially justified given the growth prospects
- Despite depreciation provision, net profit has been impressive for the company
- EBIDTA Margins stand close to 32 percent which shows strong relative position
- Company continues to enjoy strong presence across market with around 24% of market share in FY17 and a similar number expected in the current year
Future prospects
- Demand for Royal Enfield has historically remained healthy and is expected to continually do so with constant waiting period for its flagship "Classic 350" variant
- Company is planning to launch 3 new models in Apr'18 which will further garland the demand meter
- Company has re-iterated production target of approximately 825000 units in current financial year. It is however expected that the production would end up being way above this ballpark figure
- There are 30 exclusive dealers of Royal Enfield in international markets and the company is constantly expanding its footprint both in India and abroad
Synopsis
Considering the continual strong position of the company and maintenance of its market position, the strong track record and visible growth prospects, it is recommended to buy the stock at current levels with objective of incorporating it as a strong pillar in the portfolio with a long term time horizon of 6 months to 2 years