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MAT Credits

MAT credits will not be lost if you shift to the new tax regime Over the last few weeks, the press has been rife with the recent clarification given by the CBDT. In fact, CBDT had recently clarified that companies that shift to the new 22% tax formula will not get the MAT credit. That…

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MAT Credits

MAT credits will not be lost if you shift to the new tax regime Over the last few weeks, the press has been rife with the recent clarification given by the CBDT. In fact, CBDT had recently clarified that companies that shift to the new 22% tax formula will not get the MAT credit. That…

Value Troika

How HDFC Bank, RIL and TCS have held the markets aloft On the day RIL results were announced, the company touched a record market cap of Rs.900,000 crore. This is a record of sorts and immediately led to worries in the market about rich valuations. Currently, 3 Indian companies; RIL, TCS and HDFC Bank are…

BREXIT Deadlock

It is time to find an enduring solution to BREXIT When the UK House of Commons voted to put off the BREXIT vote on Saturday, it was the umpteenth time that the deal has been left in the limbo. After more than 3 years of beating round the bush, it is time for UK to…

H2 Borrowings

Borrowing numbers for second half just don’t seem to add up When the government announced the Rs.145,000 crore tax  break for Indian companies, the immediate impact was on the bond yields. The argument was that the government would be resorting to more borrowings and a higher fiscal deficit. But, the government has held its second…

MAT Credits

“No MAT credits” could be a hurdle for companies tax shift During the week, an innocuous CBDT clarification disappointed markets quite a bit. CBDT clarified that companies that opt for the new 22% tax system will not be eligible for any future MAT credits or credits for accumulated depreciation. That could be a major disincentive…

Monetary Policy

Growth revival was clearly the overarching theme of the policy The 25 bps rate cut by the Monetary Policy Committee was already factored in by the markets. However, the big overarching theme of the policy was the push to growth in a real sense. 25 bps rate cut for now The rate cut of 25…

Derivatives Tax

FPIs now have a tax advantage over domestic investors on F&O As part of the tax rationalization for investors, the Finance Minister clarified on the buyback tax. The tax will not be applicable to companies that had announced buyback offers prior to July 05th. The FM also clarified on the much debated higher surcharge on…

Fiscal Deficit

Fiscal impact of tax cuts may be big; but it will be worth the risk As the optimism around the tax cuts gives way to more reasonable analysis, it is time to evaluate the impact of the tax announcements on the fiscal deficit. Any tax cut is revenue foregone and that has a fiscal cost.…