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Budget 2016: First Thoughts Of Deepak Shenoy

by Paul Joseph March 5, 2016 Featured

Deepak Shenoy simplifies the elaborate Budget 2016 documents and answers a few questions on Periscope. We do these kind of Periscope videos on a regular basis. We share the link to join us on Periscope on our Twitter handle. Just Follow us @CapitalMind_In to know when we are going LIVE.  This Periscope video covers the following points and more: If you are an individual, it means more tax. If you are a startup, probably more tax. If you are planning a startup next year, there might be a lesser tax. No real tax cuts this time. If you make more than 1 cr, its not 30% tax +  12% surcharge, now it’s 30% + 15% If you get dividend on equity or mutual funds and get more than 10L, be prepared to pay 10% on the whole Amnesty over income for which tax hasn’t been paid – Pay 45% tax and get your name cleared Employee Provident Fund(EPF) taxation explained – we updated  and many more interesting topics. … (Read On…)

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Budget 2016: The Indirect Tax Show

by Paul Joseph March 4, 2016 Featured

The Budget 2016 saw several small changes here and there, while the truly substantial ones were hidden deep in the fine print. Nothing truly head-turning, but a few were definitely eyebrow-raising; the EPF taxation issue and increased Service Tax come to mind. We had written a post as soon as the Budget was out on Feb 29, giving you small tidbits about what the key take-aways were. Among the more talked-about news regarding the Budget, revolved around the issue of Indirect Taxes. This Budget focuses on meeting the fiscal deficit targets as stated by the FinMin (3.5%) through increased taxes, and a reduced growth in Expenditure. One such way, is through Indirect Taxes. What are They? To put it simply: Indirect Taxes are taxes that the end-consumer pays for indirectly, as opposed to a Direct Tax such as Income or Capital Gains Tax, which you would pay straight to the government coffers.… (Read On…)

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Webinar: The Currency Wars With Amit Kumar Gupta

by Paul Joseph March 4, 2016 Featured

In this webinar Mr. Amit Kumar Gupta answers a lot of questions about forex and it’s impact on us. He is a Research Head at Adroit Financial Services Pvt Ltd. On Feb 26, 2016, Deepak Shenoy and Amit Kumar Gupta discuss currencies, the way they are performing and their impact on stocks. We’ve spoken many times on slack how the Yen changes Maruti’s fortunes, and how the Chinese Yuan struggles as the government attempts to slow down the devaluation, or how the Brexit impacts the pound. … (Read On…)

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Budget 2016: Small Savings Schemes: Interest Rates Slashed!

by Paul Joseph March 3, 2016 Featured

In February this year, not even 3 weeks ago, the Finance Ministry announced some radical measures around the rates that various Small Savings Schemes currently offer.  The products that are colloquially referred to as Small Savings Schemes include: Post Office Savings Bank accounts Public Provident Fund Post Office Time Deposits (1-yr, 2-yr, 3-yr and 5-yr) Post Office RDs Kisan Vikas Patra National Savings Certificate among others. Currently, the rates for these products stand at: How Do the Interest Rates for these Schemes Get Determined? The Ministry segregates these schemes, on the usage of the funds that are raised through them. Based on the perceived ‘nobility’ of the cause, the schemes offer rates above the benchmark Government Security of comparable maturities. So for example, the Sukanya Samriddhi Yojana and the Senior Citizens Savings scheme offer 9.2% and 9.3% respectively; the highest among the Small Savings schemes. They enjoy a spread of 75 bps and 100 bps over the rate of G-securities of comparable maturities.… (Read On…)

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Deal Flow – 03/03: Atyant Capital buys into Ponni Sugars (Erode) and Seshasayee Paper & Boards

by Paul Joseph March 3, 2016 Featured

Here is the “Deal Flow (Summary of Bulk & Block Deals)” of the data that is revealed in the markets. This has been collated and curated to make trade-able sense. A Bulk Deal is a trade, where total quantity bought or sold is more than 0.5% of the number of equity shares of the company. A trade, with a minimum quantity of 5,00,000 shares or minimum value of Rs.5 crore executed through a single transaction on this separate window of the stock exchange will constitute a Block Deal . Ponni Sugars (Erode) – MACD Crossover Ponni Sugars (Erode) is an India-based company. The Company is engaged in the manufacturing of sugar and its by-products. The Company is pursuing Cogen Project. The Companys products include Cane Sugar, Cane Molasses, Molasses Bagasse. The Company’s plant is located in Namakkal District, Tamil Nadu. Seshasayee Paper & Boards Seshasayee Paper and Boards (SPB), the flagship company belonging to ‘ESVIN GROUP’, operates an integrated pulp, paper and paper board Mill at Pallipalayam, Erode-638 007, District Namakkal, Tamilnadu, India.… (Read On…)

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Budget 2016: Meets Deficit Targets Through Higher Taxes and Lower Expense Growth

by Paul Joseph March 2, 2016 Featured

Budget 2015-16 was the first real budget by the government. Which missed many estimates and added many more things. But here are the elements to note in the FY17 budget. What the government’s doing, at least on paper, is to bring the fiscal deficit down to 3.5% of GDP by increasing revenues and reducing expenditure. Revenues Will Grow 14%, Highest Since FY14: Possible? Let’s look first at how the government expects to earn its money. They will make Rs. 13.7 trillion (1 trillion = 1 lakh crore) this year, much higher than the 12.06 trillion they made in 2015-16. This translates to a growth rate of 14%, something we haven’t seen since 2013-14. This sound possible, but remember that then, inflation was a 8 to 9%, and inflation increases revenues easily. Now, inflation is at 5%, and getting 14% means you want to get a substantially higher chunk of revenues from someplace.… (Read On…)

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Update from Finmin: PPF Is Not Taxable, But EPF Corpus is Taxable at Exit And More

by Paul Joseph March 1, 2016 Featured

This is an update to our (very popular) post on Clearing the Confusion on how EPF is Taxed in Budget 2016 . The Finance Ministry has released a note confirming EXACTLY what we have said here, despite statements to the contrary made on various TV channels. Here’s the note .  Essentially: PPF is unaffected . No change, No tax on exit.  EPF Is taxable at exit. If you earned less than 15,000 rupees a month when you retire, you don’t pay this exit tax.  The idea is to discourage taking full PF when you retire, as a lumpsum. Take 40%, no tax. The remaining 60% if you do take, you are taxed on it (at retirement) Note: it’s 60% of the whole corpus, not interest . If you use this 60% to buy an annuity from an insurer, then there is no tax. Now this needs a clarification that it’s not really taxed – because technically the money comes to you and you buy an annuity, so it’s income in your name. … (Read On…)

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Clearing the Confusion on How EPF is Taxed at Exit in Budget2016

by Paul Joseph February 29, 2016 Featured

There’s a lot of confusion about the whole EPF taxation thing. Let us explain. Employees put money every month into their EPF (10% of salary) and the company puts another 10%. This money saves tax under section 80C so it’s exempt at entry Then it accrues interest each year, but you pay no tax on that interest. (exempt on accrual) Then when you turn 58, you get all the money, tax free.  (exempt at exit) This was the EEE regime. This is sadly coming to an end. Now due to Budget2016 , when you exit, the amount of money you get when you exit will be taxed. But not all of it! First, let’s understand this: The amount of money you have put in till now, and the interest it will get till you retire – that amount is still exempt at tax when you exit . That doesn’t change. From 1 April 2016, whatever money you put in , that money (plus it’s interest) is taxed when you exit. … (Read On…)

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Deal Flow: California Public Employees’ Retirement System (CalPERS) exits Axis Bank during the last 5 minutes of the trading session

by Paul Joseph February 29, 2016 Featured

Here is the “Deal Flow (Summary of Bulk & Block Deals)” of the data that is revealed in the markets. This has been collated and curated to make trade-able sense. A Bulk Deal is a trade, where total quantity bought or sold is more than 0.5% of the number of equity shares of the company. A trade, with a minimum quantity of 5,00,000 shares or minimum value of Rs.5 crore executed through a single transaction on this separate window of the stock exchange will constitute a Block Deal . Axis Bank Axis Bank Limited is the third largest private sector bank in India. Axis Bank’s stake holders include prominent national and international entities. As of 31-Dec-2015,  42.13% of the shares are owned by Foreign Portfolio Investors. Promoters ( UTI , LIC and GIC ), who collectively hold 31% of the shares, are all entities owned and controlled by the Government of India .… (Read On…)

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Budget 2016: The Service Tax Increases to 15%; Ambit gets Revamped

by Paul Joseph February 29, 2016 Featured

As the Budget day 2016 dawned upon us, expectations were lofty; would the government ease taxation? What about small savings schemes? Oh, the subsidies, something has to be done about them! While the Budget Speech in itself was quite a drab, it would seem that the devil is in the details. In this post, we look at how the Budget has altered Service Taxes : Krishi Kalyan Cess Alert! Another cess on the horizon. Owing to the success of the Swachch Bharat cess, the Finance Ministry has now decided to come up with the Krisha Kalyan cess. What is it? The tax (because that’s what it is) of 0.5% will be levied on all the existing taxable services and will come into effect on June 01, 2016. The proceeds from this burden, will be used to improve agricultural practices, and boost welfare of the farmers. Input tax credit will be available against this charge.… (Read On…)

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