'Attractiveness of a company is determined not by what is the stock price today or next week''An economy as large as India cannot grow with a huge natural resources deficit' 'It is important to have a company that competes at world-scale, with world-class technology' As Cairn India gets ready to merge with its parent entity, Vedanta, it is grappling with issues that range from tax notices to expiry of the production sharing contract with government-owned Oil and Natural Gas Corporationfor its flagship asset in Barmer. Mayank Ashar, below, managing director and chief executive officer, talks on these issues with Business Standard. Edited excerpts: How would the merger with Vedanta, when completed, affect the larger business strategy of Cairn India? The merger requires the approval of minority shareholders. Until that time, it is the normal way of doing business. Once they decide, there will be a process (to carry the merger forward). I do not see any material change after the merger, … [Read more...] about ‘No free lunch for the government; businesses need returns to invest’
Tax planning will help you pay less income tax. Something everyone wants. But smart tax planning will help you boost your portfolio. Illustration: Uttam Ghosh/Rediff.com The actual tax strategy will have a different meaning and emphasis depending upon an individual's personal circumstances. 1. Don't view any investment in isolation Good tax management can go a long way toward enhancing your return. But the decision needs to be made in conjunction with your overall portfolio and not in an ad-hoc fashion. Most individuals rarely think about tax planning from an investment point of view. Hence one finds that they do not approach an investment with a perspective of whether or not it fits in with their overall portfolio.The approach is often just grabbing up investments that will give them the tax break, irrespective of whether or not it will help them reach their determined financial goals or fit into an overall investment strategy. Tax planning investments are no different from … [Read more...] about 3 smart tax-planning tips for you
When looking at fund returns, avoid looking at just the past 12 months' performance, says Sanjay Kumar Singh.Rediff.com With the tax-saving season having begun, many people are thinking of investing in equity-linked saving schemes (ELSS), where they can get equity-like returns along with the benefit of tax saving. In December 2016, inflows into this category stood at Rs 907 crore, up 69.22 per cent over the corresponding month of the previous year.Here is a look at some of the common errors investors need to avoid committing while investing in these funds. Many people start investing in ELSS funds only towards the end of the financial year, when the time for showing proof of investment is upon them. This sometimes leads to a cash crunch in the last quarter of the financial year. It also forces investors to invest a lump sum amount. If the markets are up, they end up purchasing units at higher valuations. "Systematic investment plans (SIPs) help to maintain adequate personal liquidity … [Read more...] about Avoid these ELSS investment mistakes for higher returns
Assembly elections coming up in November and December could offer a window of opportunity to the government to make GST attractive through rate cuts. Illustration: Uttam Ghosh/Rediff.com Goods and Services Tax, which turned one on July 1, is likely to usher in significant reforms by 2019, experts and consultants believe. The changes could be in terms of tax rates, expansion of ambit, system of advance rulings, clarity on cess and procedural issues. But, some tweaking is possible much sooner. For instance, minor rate cuts in the range of 1-2 percentage points may be announced to incentivise digitalisation, anti-profiteering authority is likely to start imposing fine on companies and the refunds process is expected to be more streamlined. Some of the major changes, including single return filing system, would follow beta testing of new software for return simplification towards the year-end.Assembly elections coming up in November and December could offer a window of opportunity to the … [Read more...] about Will GST 2.0 lead to changes in tax rates?
To improve compliance, govt may introduce lottery reward for filing GST. The Consumer Welfare Fund, where anti-profiteering proceeds are deposited, will be used to reward the lucky winners on monthly and annual bases. The prize money, yet to be fixed, may run into several lakhs of rupees for the annual draw, and about Rs 50,000 for monthly draws. Illustration: Uttam Ghosh/Rediff.com Taking a copy of the bill from the seller may turn rewarding, with the government planning a lottery scheme for customers to improve compliance. The measure is being explored by the revenue augmentation officers committee to boost collections and it may be put before the Goods and Services Tax (GST) Council during its meeting on December 18.The Consumer Welfare Fund, where anti-profiteering proceeds are deposited, will be used to reward the lucky winners on monthly and annual bases. The prize money, yet to be fixed, may run into several lakhs of rupees for the annual draw, and about Rs 50,000 for monthly … [Read more...] about How govt plans to improve GST compliance