One-off deferred tax gain supported bottom lines for much of India Inc during the September quarter. But that should not take away credit from those which managed to grow bottom lines on the strength of top line expansion. September quarter earnings season broadly turned out to be better than expected, which took BSE benchmark Sensex to its record high mark. Sensex scaled a fresh all-time high of 40,676 amid the ongoing earnings season. This was one of the better earnings seasons anytime in last three or four years, says Vivek Mavani, Independent Investment Adviser. “A number of companies have beaten Street expectations. I am evening out the earnings growth because of the tax adjustments which a lot of companies have done because we had the tax cuts in the middle of the quarter. A lot of companies adjusted that in the second quarter,” he said. For instance, despite a drop in top line, Tata Steel reported a 6 per cent increase in consolidated net for the quarter at Rs … [Read more...] about Stocks to watch: In times of tax gain, these 72 firms grew Q2 PAT on top line expansion
Quarterly business tax form
By Ritesh Kumar Singh Smaller business entities are often associated with the informal sector and widely believed to dodge taxes and bypass tough labour regulations. However, an increasing number of firms engaged in consultancy, research and advisory, and other knowledge intensive services – often with substantial portion of their sales as exports – are part of the country’s formal sector. Though such firms have fewer employees compared to large firms, they are registered with registrar of companies (RoC) and GSTIN network, and are usually tax compliant. Yet, they are subject to several disadvantages that big businesses don’t have to face and that affect their cost competitiveness and growth prospects. The result is lower investment and loss of thousands of potential jobs. Nurturing this sub-segment of the formal sector will aid economic growth, improve tax to GDP ratio and create good jobs that the government has been trying to achieve through its … [Read more...] about How to help small businesses
Everyone wants to get sky-high returns on their investments in the short term. However, the fact is that - higher the returns, higher is the risk and vice versa. There is no short to success in the investment world. Short term investment plans can give you higher returns but there is a lot of risks involved, while long-term investments come with low-risk and hence lower returns. The best way to decide whether you should consider a low-risk high return or high-risk low return investment options is to match your risk profile with the risk associated with the fund you are planning to invest in. Indians mostly like to invest in non-financial assets such as - gold and real estate. The other financial investment options include - stocks, mutual funds, provident funds, tax-saving funds, bank deposits, fixed deposits etc. Here are top 5 investment options that you can consider for saving tax this year: Mutual funds Mutual funds are of different types but here we are talking exclusively … [Read more...] about Top 5 investment options for tax saving in 2019
NEW DELHI: The government’s much-lauded decision to repeal the controversial 'angel tax' will not benefit several startups because of the riders attached in the new regulation, industry leaders said. 'Angel tax', or tax on investments in startups, was considered regressive by all quarters and seen as one of the prime reasons for exodus of startups and intellectual property from the country. Leaders in the startup ecosystem say it will continue to hound many firms because, as per the new norms, only firms classified as startups under the new government regulations will be eligible for the tax exemption or other taxation-related benefits. Startups would need to get a certificate from the Inter-ministerial Board of Certification to get the 'startup' stamp, thereby fulfilling criteria such as not more than five-year old company, turnover not exceeding Rs 25 crore, working towards innovation and commercialisation of new products or services, and driven by technology or intellectual … [Read more...] about Investors see devil in the details, say angel tax exemption will not benefit several startups
Mumbai: Indian equity investors are facing a great dilemma: benchmark stock indices hover near record highs when economic growth is near multi-quarter lows. The BSE Sensex closed just shy of its lifetime high on Wednesday. After scaling a new intra-day record of 40,816, the 30-share index ended 181 points, or 0.45%, higher at 40,651, 2 points short of its all-time closing high, hit on November 7, 2019. Nifty closed just below the crucial 12,000 mark, advancing 59 points, or 0.49%, to end at 11,999. But the broader market is telling a different story, indicating that only a narrow band of stocks are supporting the rally. “It is only at the index level and a narrow list of stocks that are making it look like the market is doing very well. The broader market has not been in a great shape for the past couple of years,” said Gautam Chhaochharia, Head of Research at UBS Securities. BSE-500 index closed at 15,461 on Wednesday, and was 2.67 per cent, or 426 points, away from … [Read more...] about What’s driving stock market to record high despite multi-quarter low growth?