Budget 2017: Delay in filing I-T returns to attract max penalty of Rs 10,000 

Taxpayers who do not file their Income Tax Returns (ITRs) on time will have to shell out a penalty of upto Rs 10,000, but from the 2018-19 Assessment Year (AY). Budget 2017: Delay in filing I-T returns to attract max penalty of Rs 10,000 Taxpayers who do not file their Income Tax Returns (ITRs) on time will have to shell out a penalty of upto Rs 10,000, but from the 2018-19 Assessment Year (AY). "In order to ensure that return is filed within due date, it is proposed to insert a new section 234F in the Act (I-T Act) to provide that a fee for delay in furnishing of return shall be levied for assessment year 2018-19 and onwards in a case where the return is not filed within the due dates specified for filing of return under sub-section (1) of section 139," the memorandum for the Finance Bill 2017 said. 

It specified two levels of penalty in this regard: 1) A fee of Rs 5,000 shall be payable, if the return is furnished after the due date but on or before December 31 of the assessment year and a fee of Rs 10,000 shall be payable in any other case. 2) However, for small taxpayers or where where the total income does not exceed Rs five lakh, it is "proposed that the fee amount shall not exceed one thousand rupees." The memorandum said the decision was being taken "in view of the non-intrusive information-driven approach for improving tax compliance and effective utilisation of information in tax administration it is important that the returns are filed within the due dates." Further, it added that the "reduced time limits proposed for making of assessment" of I-T cases, as proposed in the latest Finance Bill, are also based on pre-requisite that returns are filed on time." "These amendments will take effect from April 1, 2018 and will accordingly apply in relation to assessment year 2018-19 and subsequent years," it said. 

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Rail stocks decline 3-5% ahead of Rail Budget Shares of Texmaco Rail

Shares of rail-related companies are in focus as the Rail Budget will be presented in the Parliament today. Finance Minister Arun Jaitley will present the first Rail Budget subsumed in the General Budget today. Shares of Texmaco Rail , Kalindee Rail Nirman , Titagarh Wagons and Kernex Microsystems were down 3 percent to 5 percent intraday on Wednesday. Investors are looking for a safety fund for railways reeling under a series of deadly derailments, development of new lines, station redevelopment and setting up of Rail Development Authority and High Speed Rail Authority in the Rail Budget. 

Jaitley is likely to give more focus on infrastructure development such as new lines, doubling, station redevelopment, safety upgradation. Reeling under a series of derailments, the Budget is likely to announce creation of a separate safety fund of about Rs 1 lakh crore over the next five years out of which Rs 20,000 cr will be earmarked for 2017-18, according to sources. At 09:25 hrs Texmaco Rail was quoting at Rs 104.75, down 1.78 percent, Kalindee Rail Nirman was quoting at Rs 112 down 1.71 percent. Titagarh Wagons was quoting at Rs 113.05, down 2.46 percent and  was quoting at Rs 37.95, 4.89 percent. 

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Budget 2017: diversified CPSE ETF coming soon; will it be worth the wait?

A more diversified CPSE ETF should provide plenty of wealth creation and value unlocking opportunities for retail investors, experts  by the response to the recent Central Public Sector Enterprises Exchange Traded Fund (CPSE ETF ) offering, Finance Minister Arun Jaitley, in his 2017 Budget speech, announced the launch of a more diversified public sector ETF in the next financial year. “Our ETF, comprising shares of ten CPSEs, has received overwhelming response in the recent Further Fund Offering (FFO). We will continue to use ETF as a vehicle for further disinvestment of shares. Accordingly, a new ETF with diversified CPSE stocks and other Government holdings will be launched in 2017-18,” Jaitley said in the Budget 2017-18 speech. But will a new CPSE ETF be worth the wait?

Investment experts feel the fund could come as a good investment option for the public. “A more diversified CPSE ETF should provide plenty of wealth creation and value unlocking opportunities for retail investors. However, the final decision on timing and quantum should be a function of the investor's over all asset allocation,” Ajit Narasimhan, Category Head - Savings and Investments. The recent CPSE ETF offer in January had attracted bids worth Rs 13,802 crore against the issue size of Rs 6,000 crore. The Further Fund Offer (FFO) had a size of Rs 4,500 crore with a green shoes  option of Rs 1,500 crore in case of oversubscription. A 5-percent discount was offered to retail investors. Anuraag Saboo, co-founder & CEO, Gumption Labs, which offers personal finance advisory, said the proposed new CPSE ETF would be beneficial and could spur the ETF market as a competing option to mutual funds. “The Government is clearly very enthused by response to this year CPSE ETFs. 

The launch of the diversified public sector ETFs in the coming year could drive ETFs as a new competing investing option for people instead of mutual funds. ETFs are attractive since their cost of management is much lower than most mutual funds," Sahoo said. Dhaval Kapadia, Director Portfolio Specialist, Morning star Investment Adviser India, says ETFs are convenient investment option since they can be traded on stock exchanges. “The performance of an ETF is similar to the index is tracked, subject to tracking error and the net expense ratio of the ETF. Buying a unit of ETF means investing in the stocks or assets, in the same proportion, as is in the index it is tracking. They have a lower cost structure as compared to an actively managed portfolio. Since, they are in dematerialised form it is easy to buy or sell on an exchange, at the prevailing market price,” Kapadia said. The initial offer of the CPSE ETF came out in March 2014 and has given a healthy CAGR return (including bonus and discount) of around 18 percent since. The ETF consisted of 10 large PSEs 

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Government to open commercial coal mining in FY18

Government will open up commercial mining of coal next fiscal and four dry fuel mines will go under the hammer in the first phase. | Government will open up commercial mining of coal next fiscal and four dry fuel mines will go under the hammer in the first phase. "Next year (2017-18) in coal sector, we will allocate 25 mines. Of these 2 will be alloted and 23 will be auctioned, some for the coking coal and some for sectors other than power, like cement and four for commercial mining," Coal Secretary Susheel Kumar told reporter here. "We are preparing that plan of action but we will initiate that process and conclude it in the next financial year," he said. Commercial mines are alloted without specifying the end use and allow private miners to sell the fuel to buyers across sectors such as power, cement and steel. "I don't think we need Cabinet approval (for auctioning commercial coal mines). 

We need our Minister's approval. We have prepared a discussion paper on commercial mining which will be put in public domain soon," Kumar said. A group of secretaries suggested recently that government create competition for state-run Coal India Ltd (CIL) by opening up commercial coal mining. As per the the Coal Mines Special Provision Act of 2015, government can open up commercial coal mining for private players. On non-coal mines' auction, Mines Secretary Balvinder Kumar said: "We hope that nearly 250 minings area will be put to auction in coming year (2017-18) by the major mineral producing states.

 Among these, he said there are iron ore mining areas in Karnataka which were cancelled by the Supreme Court in category C mines. Besides mining areas in Odisha, Chhattisgarh and Jharkhand would also be auctioned. Seven mining area are being put to auction in Karnataka. He said, "We have done auction of 21 mines and this year we have very ambitious project (auction plans) because we have nearly 200 mining areas, which have been cancelled/lapsed." On why these mines were cancelled, he said: "Two year period was given for executing the mining project but that period lapsed on January 11. Thus we will get 200 mining areas for auction this year 2017-18. Besides we have around 50 more mining areas (to be auctioned). There was inadequate response to auction of these mines (50)

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Buzzing stocks: Top gainers and losers on Budget day Lots of stocks from auto

FMCG, housing, banks to infra sectors participated in today's relief rally led by Union Budget 2017 but technology stocks (TCS down 2.7 percent and Infosys down 1.4 percent) continued to get butchered due to HI-B visa woes.  Bulls roared Wednesday after lots of expected factors like raising of securities transaction tax, services tax, and long term capital gains tax were left untouched by Finance Minister Arun Jaitley in his Union Budget 2017. It not only pushed pushed Sensex up 486 points but also lifted the rupee by 39 paise. Abolishment of FIPB; more push to affordable housing, rural consumption, agriculture & infrastructure sector (by allotting Rs 3.9 lakh crore); keeping FY18 fiscal deficit target at 3.2 percent; indication of interest rate cut and lowering tax rate to 5 percent from 10 percent for personal income between Rs 2.5-5 lakh crore also boosted sentiment.

 "We expect the Budget to buoy growth, bring down inflation and the interest rate and promote investment and financial savings. Speculation about the introduction of a long-term capital-gains tax on equities has been put to rest. Overall, this is an understated, but nuanced and intelligent Budget," Anand Rathi, Chairman, Anand Rathi Group said. Lots of stocks from auto, FMCG, housing, banks to infra sectors participated in today's relief rally led by Union Budget 2017 but technology stocks (TCS down 2.7 percent and Infosys down 1.4 percent) continued to butcher due to HI-B visa woes. Cigarette major ITC   was the leading contributor to benchmarks' gains (that also touched record high intraday), up 4.5 percent as excise duty hike of 2.5-6 percent on various lengths of cigarettes was within the analysts' expectations limit of 8-10 percent. PSU banks were other major drivers for this rally, with Nifty PSU Bank index rising 4 percent after the capital allocation of Rs 10,000 crore and also left the scope for more allocation (if needed) by government. SBI   gained 4 percent. L&T ,

 BHEL   , Engineers India   etc gained 2-3 percent after the government allocated Rs 3.9 lakh crore for infrastructure spending. Jaitley also left auto sector untouched, due to which Nifty Auto index gained 3.6 percent. Even stable January sales data boosted sentiment. Maruti Suzuki   shares rallied 4.7 percent after volumes increased 27 percent in the month gone by YoY. Eicher Motors   rallied 5 percent after a 50 percent jump in profit and 25 percent growth in Royal Enfield sales. Mahindra & Mahindra climbed 4 percent after major push for rural consumption by government, though its January sales declined 10 percent due to demonetisation.

 Real estate stocks Kolte-Patil   (up 12 percent) and HDIL   (up 6 percent) also participated in rally after big push to affordable housing in the Budget. The government has given infrastructure status to affordable housing. Housing finance companies HDFC   , LIC Housing Finance   , Gruh Finance and DHFL gained 3-6 percent. Non-banking finance companies Bharat Financial Inclusion   and Manappuram Finance   gained 6-9 percent on credit support to rural sector and MSMEs announced by the government. Road developers IRB Infrastructure , Dilip Buildcon   and Ashoka Buildcon   rose 2.5-6 percent after budgetary allocation for highways has been hiked by 13 percent to Rs 64,000 crore. Idea Cellular   shares declined 2 percent on profit booking after rising 63 percent in last 8 consecutive sessions as Vodafone and Aditya Birla Group company confirmed merger talks

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Indian IT firms to meet Trump officials on visa reform concerns

 R. Chandrashekhar, head of Indian IT industry body Nasscom, said details of the visit were still being finalised, but chief executives from some of India's big IT companies would be part of a delegation visiting Washington in the week of February 20. |  Indian IT sector leaders will meet both US lawmakers and officials from US President Donald Trump's administration later this month to lobby against any major changes to visa regulations that could hurt the country's USD 150 billion industry. R. Chandrashekhar, head of Indian IT industry body Nasscom, said details of the visit were still being finalised, but chief executives from some of India's big IT companies would be part of a delegation visiting Washington in the week of February 20. India's software services industry is concerned about a bill introduced in the US Congress seeking to double the salary paid to H-1B visa holders which would dramatically increase the costs for the Indian companies employing them. 

Indian IT service companies use H-1B visas to fly engineers to the US, their biggest market, to service clients, but some opponents in the United States argue they are misusing the programme to replace US jobs. Earlier in the week, Nasscom warned that a bill, introduced last month by Congresswoman Zoe Lofgren, a Democrat from California, unfairly targets some of its members and will not solve a US labour shortage in the tech sector. Chandrashekhar told Reuters that the visit would also seek to emphasize the "the economic partnership that is being built between the two countries." India's IT firms, led by Tata Consultancy Services   , Infosys   and Wipro   , have seen growth slow in 2016, as customers delayed spending ahead of the US presidential election. IT players told Reuters late last year they planned to speed up local hiring, acquire US firms with bigger local work forces and make a renewed push on automation to counter the regulatory threat. 

"Immigration concerns were a risk item, always there, but they are more pronounced now," said a senior executive at L&T Technology Services, who declined to be named. Speculation that Trump may issue an executive order curbing the H-1B programme sent shares in IT companies tumbling this week. An Indian consultant working for Infosys in the US said many of his colleagues were "dejected," while another engineer working for Cisco in North Carolina said management had called in an immigration attorney to reassure employees. India's Ministry of External Affairs said it had expressed its concerns to the US government. "No executive order has been signed so far," Vikas Swarup, a spokesman for the ministry told reporters on Thursday. "Such bills have been introduced in the past too and such bills have to go through the full Congressional process. So let's not prejudge the outcome. 

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Top three cos add Rs 34,256 cr in m-cap; TCS shines Led by TCS

Three of the top 10 most valued Indian companies together added Rs 34,256 crore to their market valuation last week. Led by  TCS   , three of the top 10 most valued Indian companies together added Rs 34,256 crore to their market valuation last week. The rest seven companies saw erosion in their market capitalisation (m-cap). However, their cumulative loss of was less than the total rise seen by the three companies - TCS, HDFC Bank   and ONGC   . The m-cap of TCS soared Rs 22,236.28 crore to reach Rs 4,98,528.12 crore, emerging as the biggest gainer among the top-10 firms.

 HDFC Bank's valuation zoomed Rs 10,522.22 crore, to Rs 2,86,676.03 crore, while ONGC added Rs 1,497.21 crore to reach Rs 1,86,424.13 crore. In stark contrast, the m-cap of RIL diminished by Rs 18,210.91 crore to Rs 3,18,383.06 crore, and that of HDFC   declined by Rs 6,730.12 crore to Rs 1,72,012.99 crore. HUL   saw an erosion of Rs 3,819.35 crore, to Rs 1,87,537.60 crore; Sun Pharma   - Rs 2,129.9 crore, to Rs 1,95,253.03 crore and ITC   - Rs 724.25 crore, to Rs 2,61,373.28 crore. The m-cap of Infosys   fell by Rs 689.09 crore to Rs 2,78,125.54 crore and Coal India  lost Rs 410.57 crore to Rs 1,81,342.82 crore. In the ranking of top-10 firms, TCS retained its pole position followed by RIL, HDFC Bank, Infosys, ITC, Sun Pharma, HUL, ONGC, CIL and HDFC. The stock market snapped two week gaining streak, as the BSE benchmark Sensex fell by 231.52 points to 25,606.62 

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