Venkatesh Chari

SEBI finally started acting on Independent Directors defaulting on their fiduciary duties. However we are still seeing companies circumventing the rotation of ID rules by appointing the exiting ID's son/wife/relative etc. as replacement #Corporate Governance

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Mandatory TReDS Onboarding: Boosting MSME Finances The Indian government has mandated that all corporates and PSUs with a turnover above ₹250 crore must join the Trade Receivables Discounting System (TReDS) by March 31, 2025. This digital platform enables MSMEs to sell their invoices to financiers, speeding up cash flows and improving working capital. Key Benefits for MSMEs: -Faster cash flow and enhanced working capital cycles -Access to alternative financing options -Greater financial inclusion Challenges Addressed: Many MSMEs struggle with delayed payments, heavy reliance on bank financing, and limited bargaining power. Mandatory corporate participation on TReDS is expected to increase transaction volume, prompt timely payments, and provide a robust support system for MSME growth. SBM & Co | Chartered Accountants #MSMEs #TReDS #Finance #WorkingCapital #FinancialInclusion

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With fintechs accounting for a significant 52% of personal loans issued in FY24, it’s clear that these firms are not just participants but key drivers in this sector. Their growing footprint, with a total loan issuance of ₹2,48,006 crore, presents their ability to cater to a vast and diverse customer base, often with innovative and accessible financial products. However, this rapid expansion comes with its challenges. The higher non-performing asset (NPA) ratios reported for fintech companies compared to traditional banks highlight the risks associated with their aggressive lending practices, particularly to underserved and high-risk segments. While fintechs excel in reaching customers who might otherwise be excluded from traditional financial services, this inclusivity comes with a trade-off in terms of loan performance and default rates. By combining fintechs' technological agility with traditional institutions' stability and regulatory oversight, the sector can potentially mitigate some of the inherent risks and enhance overall market resilience. While fintechs are undeniably transforming India's personal loans market with their innovative approaches and broad reach, the sector must address its higher risk profile to ensure long-term sustainability. The emphasis on collaboration is a step in the right direction, aiming to harness the strengths of all players involved and create a more balanced and secure financial ecosystem. Hi, I am Asheesh Chatterjee, a CA, CMA (India & UK) and an alumnus of Kellogg School of Management; I love talking about building blocks for the next level of growth and excellence. #fintechgrowth #personalloans #loanissuance #fintechinnovation #financialinclusion #NPAchallenges #riskmanagement #financialecosystem #collaboration #marketresilience

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Inside Stories of Tax Budget 2024 📜✨ 1.💡 Learn, Unlearn, and Re-learn: Major Overhaul of the Income-tax Act in the Next 6 Months! 📜✨ 2.🍏 Apple / Mange People aka HNIs: High-end luxury goods (list to be notified) will attract TCS starting January 1, 2025. The Big Fat Wedding of July 2024 is over! Unlisted bonds, MLDs, and Debt Mutual Funds to be taxed at slab rate (No more long-term/short-term distinctions). 3.🏡💼 AirBnB Tax Alert: Rental income can no longer be declared under business income head due to misuse by some taxpayers. 4.🌐📉 Google Tax aka Equilisation Levy: The 2% levy will be removed effective from October 1, 2024, aligning with the Income-tax overhaul and shifting towards the BEPS Pillars approach. 5. 📈🏠 Passive Income Updates: No more indexation on the sale of houses/flats/other assets (except properties pre-2001, as clarified by the FM team). Holding period now set to 12 months for all listed securities/units and 24 months for other assets. Long-term capital gains tax rate for listed securities increased from 10% to 12.5%, unlisted shares / property rate reduced from 20 to 12.5%. 6. 💼🚫 No more Corporate love: Exemption for gifts of capital assets by Corporates now removed [47(iii)]. 7. 🚀💸 Startup Tax Relief: The Angel Tax on startup fundings in excess of FMV now abolished, though it’s not retrospective for current tax disputes. 8. ♟️📊 Checkmate on F&O: With high-volume transactions in F&O by diverse traders, the transaction tax on Futures (STT on futures now 0.0125% from 0.02%) & Options has increased (STT on Options now 0.1% from 0.0625% at option premium). 9. 🏠🤝 Hum Saath Saath Hai (Joint Property Purchase Clampdown): No more buying properties in joint names to avoid TDS by keeping individual amounts below ₹50 lakhs. 10.👀📈 Taxman’s Eagle Eye: Any sale of equity shares through IPO where acquisition cost was indeterminable will now attract capital gains tax [55 2(ac)]. 11.🔄📉 Buyback Tax aka Dividend Income: Buyback tax abolished for companies; now taxed as dividend income in shareholders' hands. Past acquisition costs leading to capital losses will be adjusted from future capital gains. 12.🛡️ Vivad & Vishwas: New 2024 tax amnesty scheme to be notified for past income-tax litigations settlement. 13. 👨‍👩‍👧‍👦💵 Aam Aadmi Relief: Minor tweaks in income-tax slabs below ₹12 lakhs; Standard deduction increased from ₹50,000 to ₹75,000. PS: One aspect that needs pondering - Do we really need annual tax amendments/Budget or should this be a 5-year exercise to provide stability and ease of doing business for taxpayers, Corporates, Professionals, and lastly, Our Aam Aadmi (Middle Class)? KonProz Shiladitya Dash Paridhi Agarwal, Neha Khandelwal, ankita gautam gautam Jhumar Prajapat #Budget2024 #IncomeTax #EquilisationLevy #PassiveIncome #CapitalGains #CorporateTax #StartupTax #FuturesAndOptions #Taxman #TaxUpdates #Finance #Economy #TaxAmnesty #konproz

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𝐃𝐨𝐢𝐧𝐠 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐢𝐧 𝐔𝐀𝐄: 𝐊𝐞𝐲 𝐏𝐨𝐢𝐧𝐭𝐬 > 𝐎𝐃𝐈 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞: Indian investors must file the ODI Form under LRS. > 𝐅𝐫𝐞𝐞 𝐙𝐨𝐧𝐞𝐬: Not all free zones in UAE are tax-free—verify before investing. > 𝐀𝐧𝐧𝐮𝐚𝐥 𝐂𝐨𝐬𝐭𝐬: Factor in license, visa, and operational expenses. > 𝐒𝐮𝐛𝐬𝐭𝐚𝐧𝐜𝐞 𝐑𝐮𝐥𝐞𝐬: Tax exemptions need substantial UAE operations. > 𝐓𝐚𝐱 𝐑𝐚𝐭𝐞 𝐯𝐬. 𝐂𝐨𝐬𝐭𝐬: 9% tax is competitive but weigh annual costs. > 𝐑𝐞𝐬𝐢𝐝𝐞𝐧𝐜𝐲 𝐑𝐮𝐥𝐞𝐬: UAE visa doesn’t exempt you from Indian taxes. > 𝐈𝐧𝐜𝐨𝐦𝐞 𝐓𝐚𝐱: UAE bank accounts don’t make income tax-free. > 𝐓𝐚𝐱 𝐃𝐞𝐟𝐞𝐫𝐫𝐚𝐥: Money repatriated to India is deferred tax, not savings. > 𝐏𝐥𝐚𝐧 𝐖𝐢𝐬𝐞𝐥𝐲: Consult experts to optimize your UAE investments.

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Shares of Bharat Electronics (BEL) and Hindustan Aeronautics (HAL) Soar to 52-Week Highs on Strong Q4 Results - 5 Important points to note 1. HAL's FY24 revenues up 13%, BEL's revenues up 14%, exceeding previous growth averages. 2. HAL orders grew 35%, BEL orders up 73%, ensuring strong future revenue. 3. HAL expects 15-18% revenue growth, BEL's FY25, FY26 earnings estimates raised by 21%, 32%. 4. HAL expanding production, developing Asia’s largest helicopter facility, partnering with GE Aerospace. 5. Despite optimism, investors should watch for risks like revenue lumpiness and execution delays.

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Do you HATE FDs and then paying Tax on the piddly interest ......if so then read on..... So FDs yield a really low interest rate (7.5%-8%) because they are supposed to be lowest risk investment. Within the FDs State owned banks are supposed to be even lower risk and hence even lower rates! 7.5%-8% isn't a bad return per say......it beats inflation but the problem is TAX!! Depending on your income level there could be a 15-40% haircut on this and suddenly you are staring at 5% or so of net return!! Everyone knows this.... Do you know whats even more shocking.....most FDs are cash loss making till they mature!!! I shall explain - 🔥Tax on FDs is based on Accrued Interest ie you have to pay tax even when your interest is locked up alongside the principal amount. 💡 So if you had a 100 Lakhs in FD for 5 years at 8% interest 🔥Your FD earns 8 Lakhs in interest every year. But you got zero Cash for it as this interest is compounding with the principle 🔥on this 8 lakhs if you are in 30% tax bracket you will pay approx 2.75 lakhs as tax - from some other pocket because the FD has yet not laid any golden eggs. 🔥Over next 5 years you will pay ~16 LAKHS as TAX before you get the promised return.......Did you ever realise this massive CASH Exodus!! So what options does a Risk averse person have....... 💡Sleep well thinking what options do I have.....console ones mind and abuse me for writing this post and make this all my fault!! 💡Pray to our Madam FM to pls make appropriate changes in tax laws to not rob FD investor 💡OR.......listen to my "Super IDEA" - Invest in GILT funds!!! 🔥Whats is a GILT fund? A Mutual Fund that only invests in Government Securities - Central or State government 🔥What is risk profile of such a fund? - Well they are backed by the Government - same as banks.....so may be as secure as state owned banks....actually more I would think since they don't even have the business risks of a bank - NPA led disasters!!..... LOWEST RISK Possible 🔥Whats the return? Well the average return of GILT funds for last 1 years is above 10% and 3 year returns are around 7%-7.5%. 🔥The thesis here is that as interest rates will fall to below 7% then the yield on GILT funds is much higher given that they hold long maturity Government bonds with high interest rate say 7%-7.5% 🔥So these funds may actually give a much higher return but the other brilliant thing is..... 🔥they will be taxed only when you redeem your units!! So no every year tax......so in case this is part of your retirement corpus then you may pay NO or very little tax in those years when this will be your only income!!! Given the interest rate cycle is about to turn ......weigh your options and if you want to follow this idea and need help....DM / Comment!! Was this as Brain Exploding 🤯 as I thought it would be then - Like .. Share and comment your thoughts!!

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Agreed! For secondary transactions new technology-enabled platforms are emerging to provide liquidity and ease of transactions in unlisted shares. Keep it up #incentiv 😃 #Secondarymarket #PrivateEquity

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🌟 Silver Shines Brighter Than Ever in 2024! 🌟 Silver prices have hit new highs—₹1 lakh per kg in India and over $34.50 per ounce globally, a 12-year peak! 📈✨ What’s driving this surge? ➡️ Geopolitical tensions in the Middle East ➡️ ECB rate cuts fueling safe-haven demand In India, silver demand spikes during festivals like Diwali, while globally, its value is rooted in tech applications like electronics, solar panels, and semiconductors. With gold prices soaring, retail investors are now turning to silver as a more affordable alternative. 🚀 🔍 Fun Fact for Traders: The gold-silver ratio offers unique opportunities. With an average ratio of 47:1 in the 20th century, and peaks and valleys in recent years, investors often hedge with long silver and short gold positions when expecting a shift. 📊💡 With EVs and renewable energy on the rise, silver’s role as a safe-haven and tech-essential metal continues to shine. 🌞🌱 #Silver #Investing #PreciousMetals #MarketTrends #SafeHaven

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🚀 After bill payments and credit cards, Adani One--the super app of Adani Group —has begun pilots with digital lending firms and non-banking financial companies (NBFCs) to offer loans on the platform, two sources close to the development told moneycontrol.com. 💫 Housed under Adani Enterprises Limited’s digital arm, Adani Digital Labs, the firm has finalised an arrangement with KrazyBee Services, the NBFC arm of fintech firm KreditBee, as its co-lending partner to offer personal loans. 🌟 According to the sources, Adani One is in negotiations with other NBFCs and fintech players to offer credit products to its customers. ✨ As part of the agreement, Adani Digital Labs will act as a lending service provider (LSP), while personal loans ranging from Rs 1,000 to Rs 5 lakh will be extended from KrazyBee’s books. The commissions will vary depending on the contract and loan size. 📜 The app also offers bill payments on the platform, courtesy of the linkage with the Bharat Bill Payment System (BBPS), which aggregates all utility billers, insurance premium payments and loan repayments. Adani Group Adani Airport Holdings Ltd Adani Realty Adani Power Adani Ports and SEZ Adani Energy Solutions Ltd. Adani Green Energy Ltd. Adani Electricity Adani Enterprises Limited Adani Wilmar Limited Adani Solar #investment #finance #capital #money #wealth #strategy #growth #construction #india #Adani #marketing #leadership #economy #market #nifty #sensex

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The poll result is out, so 68 % thinks that you should be CA to become a CFO, or rather 32% says that you don’t need to be CA to become CFO #CFO #CA #wakeupcall CFO Club CFO India

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If an assessee’s turnover is more than Rs. 1 crore and cash transactions (both payments and receipts) are less than 5% of the total, does this subject them to a tax audit? Here’s a detailed breakdown in tabular form to clarify:

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Recently, the Income Tax Department sent tax notices to three Chinese companies for not paying taxes on ₹2,200 crore of profits earned in India. These firms operated through Indian subsidiaries to sell solar products but didn’t declare a Permanent Establishment (PE) in India. 📜 This raises an important question: What is PE, and why does it matter for foreign businesses in India? 🤔 Imagine you are running a business headquartered in one country but generating income in another. Does that income get taxed in the second country? The answer lies in something called a Permanent Establishment. 🔥 A PE is a fixed place of business through which a foreign company carries out significant activities in another country. For example, an office, a branch, or even a sales team operating in India could be considered a PE. 🏢 Why is PE Important? Simply exporting goods to India doesn’t mean a foreign company has to pay tax here. But if the company has a PE in India, it is considered to have a taxable presence. Profits linked to the PE are treated as income earned in India and are taxed under Indian law. 💸 PE rule makes sure foreign companies pay taxes on profits earned from their business in India when they don’t just export to India but have actual operations here. It ensures fair competition and helps companies follow tax rules. ⚖ How to Analyze Whether You Have a PE in India? Here are some key questions to ask: 1️⃣ Do you have a fixed place of business in India? 🏭 Examples: an office, factory, or workshop. Even a small sales desk could count. 2️⃣ Are you operating through dependent agents? 👩‍💼 If you have agents in India who habitually finalize contracts, secure orders, or represent you in business dealings, it could create a PE. 3️⃣ Are business decisions made in India? 🎯 If key functions such as management, decision-making, or sales operations happen here, that strengthens the case for a PE. 4️⃣ How long is your presence in India? A significant period of operation—especially for construction or installation projects—can establish a PE. 5️⃣ Are Indian customers paying directly to foreign accounts? 💱 Structured payment flows might still attract PE classification if connected to Indian business operations. If your business activities meet the PE criteria, you may need to: ✔ File tax returns in India. ✔ Pay Indian corporate tax on profits attributable to the PE. PE is an important part of international tax rules for businesses working in different countries. Ignoring PE rules can lead to large tax bills, fines, and harm to your reputation. ⚡ #Business #Tax #PE

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Understanding Cost of Capital: The Cornerstone of Strategic Financial Decisions Generally, whenever I evaluate the feasibility of a project, even though my organization can secure capital on debt at 6-7%, no project gets approved unless it promises an IRR of at least 13%. One day, I sat with my senior Anil Kumar Singh (CA, Ind AS) who explained the cost of capital, the associated risks in the business, and why owners prioritize it. Let’s delve into this today 🔍 What is the Cost of Capital and Why Does It Matter? The cost of capital is a crucial financial metric that represents the return a company needs to achieve to justify the cost of its funding from both debt and equity sources. It’s vital for making informed decisions about investments, financing, and operations. Here's a breakdown: 1. Cost of Debt: This is the effective interest rate a company pays on its borrowed funds. Lowering the cost of debt can significantly enhance profitability by reducing interest expenses. 2. Cost of Equity: This is the return that shareholders expect for their investment in the company. Balancing the cost of equity involves meeting return expectations while managing financial risk. 3. Weighted Average Cost of Capital (WACC): This composite rate reflects the cost of both debt and equity, weighted by their respective proportions in the company’s capital structure. It serves as a critical benchmark for evaluating new projects and investments. A project is typically considered worthwhile if its return exceeds the WACC. 📊 Example: Imagine a company, ABC Corp, has the following capital structure: Debt: AED 5 Mn at an interest rate of 5% Equity: AED10 Mn with an expected return of 12% To calculate the WACC: Cost of Debt (after tax): 5% * (1 - Tax Rate). Assuming a tax rate of 9% (the after-tax cost of debt is 4.55%). Cost of Equity: 12% Weights: Debt: AED 5 Mn / (AED 5 Mn + AED 10 Mn) = 1/3 Equity: AED 10 Mn / (AED 5 Mn + AED 10 Mn) = 2/3 WACC = (1/3 * 4.55%) + (2/3 * 12%) = 0.015167 + 0.08 = 9.52% ABC Corp’s WACC is 9.52%. This means any project ABC undertakes should have an expected return higher than 9.52% to be considered worthwhile. 📈 Why It's Important: 1. Investment Decisions: Companies use the cost of capital to assess the profitability of new projects. A project with a return higher than the WACC will add value to the company. 2. Financial Strategy: Understanding and managing the cost of capital helps in structuring optimal financing strategies to minimize costs and maximize returns. 3. Performance Benchmarking: It provides a yardstick to measure the performance of investment and financing decisions. By maintaining a clear understanding of your company’s cost of capital, you can make strategic decisions that drive growth and create value for shareholders. #CostOfCapital #CorporateFinance #FinancialStrategy #InvestmentPlanning #BusinessGrowth

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Whether tax sparing credit is available to Indian Resident taxpayers in India? Tax sparing credit essentially allows taxpayers in their resident country to claim a credit for the taxes that would have been payable in the foreign source country, if there were no tax reduction or exemption in place. While many countries offer tax incentives like tax holidays to foreign taxpayers, India's stance on tax sparing credit differs. In line with most Double Taxation Avoidance Agreements (DTAAs), India generally allows tax credits only for taxes actually paid in the foreign jurisdiction. Unlike some countries, India doesn't extend the benefit of tax sparing credit to its tax residents. So, for Indian resident taxpayers, the key takeaway is that tax credits are typically available only for taxes paid abroad, rather than for the potential taxes that could have been paid under foreign tax incentives. Understanding this aspect can help taxpayers plan their international tax affairs more effectively. #taxpayers #taxation #taxcompliances #casanjay #taxcredit

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