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Sebi norm on profit-sharing puzzles firms Norms issued by the Securities and Exchange Board of India (Sebi) on profit-sharing agreements have forced companies to seek clarifications. A round six companies have sought informal guidance over applicability of the provisions in various situations. An informal guidance is a method for entities to seek interpretation from the market regulator on any regulation, circular or guideline. Although Sebi acts in accordance with an informal guidance, it is not a binding obligation. Legal experts say there are many grey areas in the circular issued by Sebi in November last year to curb profit-sharing arrangements, which are typically side-deals between the managements of companies and private equity investors. One of the key issues is how “profit” is interpreted because there is no standard definition, experts point out. Further, it is unclear whether the provisions are applicable to payments made in unlisted subsidiaries of listed compan

Banks, insurance companies under lens for inflated tax credits The government is keeping a watch on some banks, insurance companies and technology and telecom firms after it announced that errors in tax credit claims should be rectified, according to two people aware of the matter. "There are instances where the transitional credit has jumped by more than 50% from the period before GST (goods and services tax). The government want these companies to return transitional credit either erroneously claimed or inflated," one of the persons said, requesting not to be named. A few companies in FMCG and consumer durables sectors are also under the scanner, the person said. Tax credit is the amount that can be set off against a taxpayer's liability. When India moved to GST, many companies faced a situation where they had paid tax on old stock and availed credit but had to now set it off against the GST liability. Transitional credits are tax credits accumulated before July

To avoid extra TDS, give tax-saving proofs If you don’t submit proof of tax-saving investments and expenses, your employer will deduct tax as per the applicable slab rate, without considering tax deductions Though a few months are still left for financial year 2017-18 (FY18) to end, your employer will soon ask or might have already reminded you to submit proof of tax-saving investments and expenses to claim various tax deductions. If you fail to submit the documents, your employer is liable to deduct tax as per the applicable slab rate, without considering tax deductions. And if that happens, you may end up paying extra tax in the form of tax deducted at source (TDS), from the salary of the remaining months of the FY. Here’s what you need to do to avoid paying more tax than you have to. Document submission There is no specific date mentioned in the income tax laws regarding submission of tax-saving investment documents to the employer. “As such there is no statutory time li

To avoid extra TDS, give tax-saving proofs If you don’t submit proof of tax-saving investments and expenses, your employer will deduct tax as per the applicable slab rate, without considering tax deductions Though a few months are still left for financial year 2017-18 (FY18) to end, your employer will soon ask or might have already reminded you to submit proof of tax-saving investments and expenses to claim various tax deductions. If you fail to submit the documents, your employer is liable to deduct tax as per the applicable slab rate, without considering tax deductions. And if that happens, you may end up paying extra tax in the form of tax deducted at source (TDS), from the salary of the remaining months of the FY. Here’s what you need to do to avoid paying more tax than you have to. Document submission There is no specific date mentioned in the income tax laws regarding submission of tax-saving investment documents to the employer. “As such there is no statutory time li

Banks set to crack down on defaulters in RBI’s second list A majority of companies on RBI’s second list of loan defaulters, including Monnet Power and Visa Steel, will be referred to NCLT for bankruptcy proceedings Banks are set to refer a majority of the 28 loan defaulters cited in the Reserve Bank of India’s (RBI’s) second list to bankruptcy courts starting Thursday, as the central bank prods lenders to speedily resolve bad loans clogging their balance sheets. After its first list of 12 large defaulters was sent to banks in June, RBI sent a second list of 28 troubled companies in late August, accounting for Rs 2 trillion of bad loans, asking lenders to find resolution plans for them by 13 December or start insolvency proceedings by December end. The assets of some of the 40 top defaulters are likely to be sold over the next few months as RBI and the government pushes lenders to speed up the resolution of Rs10 trillion of soured loans. This, along with the government’s Rs 2.

India´s economy to grow at 7.2% in ´18; 7.4% in 2019 India´s economy is projected to grow at 7.2 per cent in 2018 and 7.4 per cent in 2019, despite a slow down observed this year and the lingering effects from the note ban, the UN has said. The outlook for India remains largely positive, underpinned by robust private consumption and public investment as well as ongoing structural reforms, despite the slowdown observed in early 2017 and the lingering effects from the demonetisation policy, the United Nations said. The Business Standard, New Delhi, 13th December 2017

Bond yields likely to climb more India´s bond investors seem have gotten tired of the incessant supply of fixed income papers time when regulatory requirement them are reducing progressively.And, with inflation rising, chances of the Reserve Bank of India (RBI) cutting rates have almost nullified. As a result, bond yields have been rising and this should beacause for concern for everyone as the 10 year bond yield is considered the benchmark interest rate of the economy.Bond yields and prices move in opposite direction.The 10 year bond yield rose to as high as 7.22 per cent in the morning trade, but climbed back to close at 7.19 per cent, marginally higher than its previous close of 7.18 percent But if we expand the time frame, the bond yields have risen from 6.4 per cent level in August.That way, the rise in yields is quite dramatic even as the central bank cut its repo rate once in August.Oil prices have started climbing up and at near Rs 65 a barrel, it would put upward press