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…

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…