By Prasad Vanga It is fair to say that India’s VC industry is broadly happy with Government policy in recent times; and yet there always seem to be unmet aspirations that everyone hopes would be addressed in the next Budget. This is the common theme in every conversation I have at industry events, panels and the like – so at the risk of being repetitive, I will enumerate these. From a “pure” taxation standpoint, the ecosystem wishes for lowering of the GST rates for Fund managers for management fees charged to AIFs. This could be especially useful for smaller funds (say less Rs 100 crore). Second, they wish for rationalization of the timing of taxes on ESOPs – by which taxes are calculated only when true capital gain (as opposed to paper gains) are realized. Both changes would improve sentiment and the viability of careers in these fields. Second, the government should make it easier for India’s massive pension funds and insurance players to invest … [Read more...] about This Budget, can we get India’s massive pension and insurance players to invest into VC funds
Corporate tax in india
Days’ sales of inventory had fallen at the beginning of 2019-20 (FY20), indicating improving sales momentum, but reversed in September, rising to 45.7 days compared to 44.5 days in March. This is based on a sample of 196 S&P BSE 500 companies (excluding financials and oil & gas) with continuous data since at least September 2009. … [Read more...] about Falling sales add a new worry to corporates: Rising inventory
Senior government sources said buybacks by public sector units could get the exchequer between Rs 12,000 crore (Rs 120 billion) and Rs 15,000 crore (Rs 150 billion). There could also be the offer-for-sale of general insurance companies GIC and New India Assurance. … [Read more...] about Will the Modi govt get its divestment maths correct?
By Gautam Chhaochharia The Union Budget will have important implications for the four-key framework -- capex, exports, policy and credit -- from which we expect an earnings cycle inflection ahead. We expect three keys – property, exports and credit cycle – to be supportive and any measure to support them will aid visibility. Post-Budget volatility has been high, especially in tax-related events. On a headline basis, we expect fiscal deficits of 3.7%/3.4% in FY20/21. Our discussions with investors suggest equity markets may welcome a fiscal slippage, although the impact on bond yields or the currency will also ultimately matter for the equity markets. Beyond an immediate respite in growth, a credible glide path ahead and the narrative on how this can create a sustainable growth cycle will also matter. However, our experience in recent years is not supportive; the government focus on infrastructure spending as well as leverage-aided resilient consumption growth have failed … [Read more...] about Dear FM, it’ll be nice to see some Budget innovations to fund capex, create demand
Tax rates halved to 5% for income of Rs 2.5-5 lakh, tax slabs unchanged 10% surcharge on people earning between Rs 50 lakh-1 cr 15% surcharge on annual income above Rs 1 cr to continue Cash transactions above Rs 3 lakh to banned Corporate tax for SMEs with turnover up to Rs 50 cr cut to 25%; 96% companies to benefit Customs duty of LNG halved to 2.5% Fiscal deficit pegged at 3.2% next year, 3% in FY'19 Political parties barred from accepting cash donation beyond Rs 2,000 per individual They can receive donations via cheques, electronic mode; electoral bonds to be issued by RBI Aadhaar-based health cards for senior citizens; a scheme for them to ensure 8 pc guaranteed returns FIPB to be abolished; further FDI policy liberalisation Government to have time-bound procedure for CPSE listing Railway PSUs -- IRCTC, IRFC, IRCON to be listed Payment Regulatory Board to be set up within RBI to regulate digital payments Negotiable instruments Act to be amended to deal … [Read more...] about HIGHLIGHTS: Union Budget 2017-18