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Budget 2018 Impact: 26 of 50 midcap stocks on NSE close in the negative

After Finance Minister Arun Jaitley's Union Budget 2018-19, EY analyses the impact of the announcements on each of the 50 midcap stocks listed on the NSE

BS Web Team 

FM Arun Jaitley presenting the budget in the Parliament
FM Arun Jaitley presenting the budget in the Parliament

Finance Minister Arun Jaitley on Thursday presented Union 2018-19 in Parliament. This was his fifth and the Narendra Modi government’s last full before heading into the 2019 general elections. Some of the market-related measured announced by Jaitley in his impacted the Indian equity

This EY analysis looks at the announcements in Finance Minister Arun Jaitley’s Union 2018-19 that might have impacted each of the NSE’s Nifty50 stocks:

RELIANCE POWER

· Rationalization of additional deduction of 30% on new employees

· Existing secondary and higher education cess of 3% increased to 4%

· Deemed dividend under section 2(22)(e) to attract dividend distribution tax@ 30%

· Long term capital gains tax @10% introduced on sale of listed shares

· Increase in the effective duty due to introduction of social welfare surcharge

CENTURY TEXTILES

· Rationalization of additional deduction of 30% on new employees

· Existing secondary and higher education cess of 3% increased to 4%

· Deemed dividend under section 2(22)(e) to attract dividend distribution tax@ 30%

· Package of Rs 7,148 crores announced for textile sector

· Increase in the effective duty due to introduction of social welfare surcharge

RELIANCE INFRA.

· Rationalization of additional deduction of 30% on new employees

· Existing secondary and higher education cess of 3% increased to 4%

· Long term capital gains tax @10% introduced on sale of listed shares

· Chapter VI-A deduction denied in case of belated return

· E-assessments to be made mandatory from April 2020

· Accumulated profits of amalgamating company to be considered for computing deemed dividend

· Budgetary expenditure on infrastructure increased to 5.97 lakh crore from 4.94 lakh crore last year

· Increased focus on infrastructure sector will provide market opportunities

· Increase in the effective duty due to introduction of social welfare surcharge

ENGINEERS INDIA

· Rationalization of additional deduction of 30% on new employees

· Existing secondary and higher education cess of 3% increased to 4%

· Deemed dividend under section 2(22)(e) to attract dividend distribution tax@ 30%

· Long term capital gains tax @10% introduced on sale of listed shares

· For the first time, budgetary expenditure allocated to EIL to the tune of 1,356 crores

· Increase in the effective duty due to introduction of social welfare surcharge

GMR INFRA.

· Rationalization of additional deduction of 30% on new employees

· Existing secondary and higher education cess of 3% increased to 4%

· Deemed dividend under section 2(22)(e) to attract dividend distribution tax@ 30%

· Long term capital gains tax @10% introduced on sale of listed shares

· New initiatives in infrastructure sector to provide market opportunities

· Budgetary expenditure on infrastructure increased to 5.97 lakh crore as against estimated expenditure of 4.94 lakh crore in 2017-18

· Duty rationalized on import of bricks, blocks, tiles and other ceramic

· Increase in the effective duty due to introduction of social welfare surcharge

M R P L

· Rationalization of additional deduction of 30% on new employees

· Existing secondary and higher education cess of 3% increased to 4%

· Deemed dividend under section 2(22)(e) to attract dividend distribution tax@ 30%

· Long term capital gains tax @10% introduced on sale of listed shares

· Budgetary expenditure decreased from 1,138 crores to 744 crores

TATA CHEMICALS

· Rationalization of additional deduction of 30% on new employees

· Existing secondary and higher education cess of 3% increased to 4%

· Deemed dividend under section 2(22)(e) to attract dividend distribution tax@ 30%

· Long term capital gains tax @10% introduced on sale of listed shares

· Boost to agriculture sector will provide market opportunities

· Increase in the effective duty due to introduction of social welfare surcharge

INDRAPRASTHA GAS

· Rationalization of additional deduction of 30% on new employees

· Existing secondary and higher education cess of 3% increased to 4%

· Deemed dividend under section 2(22)(e) to attract dividend distribution tax@ 30%

· Long term capital gains tax @10% introduced on sale of listed shares

· Chapter VI-A deduction denied in case of belated return

· Free cooking gas programme increased to 8 crore poor families from 5 crore earlier

· Increase in the effective duty due to Introduction of social welfare surcharge

BHARAT FORGE

· Rationalization of additional deduction of 30% on new employees

· Existing secondary and higher education cess of 3% increased to 4%

· Deemed dividend under section 2(22)(e) to attract dividend distribution tax@ 30%

· Long term capital gains tax @10% introduced on sale of listed shares

· Budgetary expenditure on infrastructure increased to 5.97 lakh crore from 4.94 lakh crore last year

· Increased focus on infrastructure sector will provide market opportunities

· Increase in the effective duty due to introduction of social welfare surcharge

· Increase in the BCD on majority of the auto components

CESC

· Rationalization of additional deduction of 30% on new employees

· Existing secondary and higher education cess of 3% increased to 4%

· Deemed dividend under section 2(22)(e) to attract dividend distribution tax@ 30%

· Long term capital gains tax @10% introduced on sale of listed shares

· Budgetary expenditure on infrastructure increased to 5.97 lakh crore from 4.94 lakh crore last year

· Rural electrification to provide opportunities

· Increase in the effective duty due to Introduction of social welfare surcharge

DALMIA BHARAT

· Rationalization of additional deduction of 30% on new employees

· Existing secondary and higher education cess of 3% increased to 4%

· Deemed dividend under section 2(22)(e) to attract dividend distribution tax@ 30%

· Long term capital gains tax @10% introduced on sale of listed shares

· Budgetary expenditure on infrastructure increased to 5.97 lakh crore from 4.94 lakh crore last year

· Increased focus on infrastructure sector will provide market opportunities

· Increase in the effective duty due to introduction of social welfare surcharge

NBCC

· Rationalization of additional deduction of 30% on new employees

· Existing secondary and higher education cess of 3% increased to 4%

· Deemed dividend under section 2(22)(e) to attract dividend distribution tax@ 30%

· Long term capital gains tax @10% introduced on sale of listed shares

· Budgetary expenditure on infrastructure increased to 5.97 lakh crore from 4.94 lakh crore last year

· Increased focus on infrastructure sector will provide market opportunities

· Duty rationalized on import of bricks, blocks, tiles and other ceramic

· Increase in the effective duty due to introduction of social welfare surcharge

ADANI POWER

· Rationalization of additional deduction of 30% on new employees

· Existing secondary and higher education cess of 3% increased to 4%

· Deemed dividend under section 2(22)(e) to attract dividend distribution tax@ 30%

· Long term capital gains tax @10% introduced on sale of listed shares

· Chapter VI-A deduction denied in case of belated return

· Increase in the effective duty due to introduction of social welfare surcharge

JINDAL STEEL

· Rationalization of additional deduction of 30% on new employees

· Existing secondary and higher education cess of 3% increased to 4%

· Deemed dividend under section 2(22)(e) to attract dividend distribution tax@ 30%

· Long term capital gains tax @10% introduced on sale of listed shares

· Chapter VI-A deduction denied in case of belated return

· Budgetary expenditure on infrastructure increased to 5.97 lakh crore from 4.94 lakh crore last year

· Increased focus on infrastructure sector will provide market opportunities

· Increase in the effective duty due to introduction of social welfare surcharge

Castrol India

· Increase in the effective duty due to introduction of social welfare surcharge

IRB INFRA.DEVL.

· Increase in Education cess from 3% to 4%

· Tax on Long Term Capital Gains exceeding Rs. 1 lakh at the rate of 10%, without allowing indexation

· 80JJAA provisions rationalised to give benefit to new employees subject to condition

· Transaction in respect of trading of agricultural commodity on recognised stock exchange to be treated as non – speculative transaction

· No adjustment in respect of transactions in immovable property where Circle Rate value does not exceed 5 percent of consideration

· Legislative amendments to align the provisions of Income tax with Income computation and Disclosure Standards

· Government to raise equity from market for mature road assets

· Use innovative monetizing structures like Toll Operate & Transfer and InvITs

L&T FIN.HOLDINGS

· Increase in Education cess from 3% to 4%

· Tax on Long Term Capital Gains exceeding Rs. 1 lakh at the rate of 10%, without allowing indexation

· Compensation on termination or modification of terms and conditions of contract to be taxable as business income or income from other sources

· Transaction in respect of trading of agricultural commodity on recognised stock exchange to be treated as non – speculative transaction

· SEBI to consider mandating large corporates, to meet about one-fourth of their financing needs from the bond market.

· Amendment in the Indian Stamp Act with respect to stamp duty regime on financial securities transaction.

· Unified authority for regulating all financial service in IFSC to be established

Mahindra & Mahindra Financial Services Ltd.

· Increase in Education cess from 3% to 4%

· Tax on Long Term Capital Gains exceeding Rs. 1 lakh at the rate of 10%, without allowing indexation

· Compensation on termination or modification of terms and conditions of contract to be taxable as business income or income from other sources

· Transaction in respect of trading of agricultural commodity on recognised stock exchange to be treated as non – speculative transaction

· SEBI to consider mandating large corporates, to meet about one-fourth of their financing needs from the bond market.

· Amendment in the Indian Stamp Act with respect to stamp duty regime on financial securities transaction.

· Unified authority for regulating all financial service in IFSC to be established

FEDERAL BANK

· Increase in Education cess from 3% to 4%

· Tax on Long Term Capital Gains exceeding Rs. 1 lakh at the rate of 10%, without allowing indexation

· Compensation on termination or modification of terms and conditions of contract to be taxable as business income or income from other sources

· Transaction in respect of trading of agricultural commodity on recognised stock exchange to be treated as non – speculative transaction

· SEBI to consider mandating large corporates, to meet about one-fourth of their financing needs from the bond market.

· Amendment in the Indian Stamp Act with respect to stamp duty regime on financial securities transaction.

· Unified authority for regulating all financial service in IFSC to be established

· Bank recapitalisation program launched with bonds of INR 80,000 crores to pave the way for public sector banks to lend additional credit of INR 5 lakh crore.

IDFC Bank Ltd.

· Increase in Education cess from 3% to 4%

· Tax on Long Term Capital Gains exceeding Rs. 1 lakh at the rate of 10%, without allowing indexation

· Compensation on termination or modification of terms and conditions of contract to be taxable as business income or income from other sources

· Transaction in respect of trading of agricultural commodity on recognised stock exchange to be treated as non – speculative transaction

· SEBI to consider mandating large corporates, to meet about one-fourth of their financing needs from the bond market.

· Amendment in the Indian Stamp Act with respect to stamp duty regime on financial securities transaction.

· Unified authority for regulating all financial service in IFSC to be established

· Bank recapitalisation program launched with bonds of INR 80,000 crores to pave the way for public sector banks to lend additional credit of INR 5 lakh crore.

RBL BANK

· Increase in Education cess from 3% to 4%

· Tax on Long Term Capital Gains exceeding Rs. 1 lakh at the rate of 10%, without allowing indexation

· Compensation on termination or modification of terms and conditions of contract to be taxable as business income or income from other sources

· Transaction in respect of trading of agricultural commodity on recognised stock exchange to be treated as non – speculative transaction

· SEBI to consider mandating large corporates, to meet about one-fourth of their financing needs from the bond market.

· Amendment in the Indian Stamp Act with respect to stamp duty regime on financial securities transaction.

· Unified authority for regulating all financial service in IFSC to be established

MUTHOOT FINANCE

· Increase in Education cess from 3% to 4%

· Tax on Long Term Capital Gains exceeding Rs. 1 lakh at the rate of 10%, without allowing indexation

· Compensation on termination or modification of terms and conditions of contract to be taxable as business income or income from other sources

· Transaction in respect of trading of agricultural commodity on recognised stock exchange to be treated as non – speculative transaction

· SEBI to consider mandating large corporates, to meet about one-fourth of their financing needs from the bond market.

· Amendment in the Indian Stamp Act with respect to stamp duty regime on financial securities transaction.

· Unified authority for regulating all financial service in IFSC to be established

· Gold monetization scheme to be revamped to enable people to open hassle free gold deposit account

BANK OF INDIA

· Increase in Education cess from 3% to 4%

· Tax on Long Term Capital Gains exceeding Rs. 1 lakh at the rate of 10%, without allowing indexation

· Compensation on termination or modification of terms and conditions of contract to be taxable as business income or income from other sources

· Transaction in respect of trading of agricultural commodity on recognised stock exchange to be treated as non – speculative transaction

· SEBI to consider mandating large corporates, to meet about one-fourth of their financing needs from the bond market.

· Amendment in the Indian Stamp Act with respect to stamp duty regime on financial securities transaction.

· Unified authority for regulating all financial service in IFSC to be established.

· Bank recapitalisation program launched with bonds of INR 80,000 crores to pave the way for public sector banks to lend additional credit of INR 5 lakh crore.

IDBI BANK

· Increase in Education cess from 3% to 4%

· Tax on Long Term Capital Gains exceeding Rs. 1 lakh at the rate of 10%, without allowing indexation

· Compensation on termination or modification of terms and conditions of contract to be taxable as business income or income from other sources

· Transaction in respect of trading of agricultural commodity on recognised stock exchange to be treated as non – speculative transaction

· SEBI to consider mandating large corporates, to meet about one-fourth of their financing needs from the bond market.

· Amendment in the Indian Stamp Act with respect to stamp duty regime on financial securities transaction.

· Unified authority for regulating all financial service in IFSC to be established

· Bank recapitalisation program launched with bonds of INR 80,000 crores to pave the way for public sector banks to lend additional credit of INR 5 lakh crore.

UNION BANK (I)

· Increase in Education cess from 3% to 4%

· Tax on Long Term Capital Gains exceeding Rs. 1 lakh at the rate of 10%, without allowing indexation

· Compensation on termination or modification of terms and conditions of contract to be taxable as business income or income from other sources

· Transaction in respect of trading of agricultural commodity on recognised stock exchange to be treated as non – speculative transaction

· SEBI to consider mandating large corporates, to meet about one-fourth of their financing needs from the bond market.

· Amendment in the Indian Stamp Act with respect to stamp duty regime on financial securities transaction.

· Unified authority for regulating all financial service in IFSC to be established

· Bank recapitalisation program launched with bonds of INR 80,000 crores to pave the way for public sector banks to lend additional credit of INR 5 lakh crore.

CANARA BANK

· Increase in Education cess from 3% to 4%

· Tax on Long Term Capital Gains exceeding Rs. 1 lakh at the rate of 10%, without allowing indexation

· Compensation on termination or modification of terms and conditions of contract to be taxable as business income or income from other sources

· Transaction in respect of trading of agricultural commodity on recognised stock exchange to be treated as non – speculative transaction

· SEBI to consider mandating large corporates, to meet about one-fourth of their financing needs from the bond market.

· Amendment in the Indian Stamp Act with respect to stamp duty regime on financial securities transaction.

· Unified authority for regulating all financial service in IFSC to be established

· Bank recapitalisation program launched with bonds of INR 80,000 crores to pave the way for public sector banks to lend additional credit of INR 5 lakh crore.

Strides Shasun

· Rationalization of additional deduction of 30% on new employees

· Existing secondary and higher education cess of 3% increased to 4%

· Any capital/ revenue compensation receivable towards termination/modification of business contract taxable as business income

· Introduction of World’s largest government funded health care titled “National Health Protection Scheme” to cover over 10 crore poor and vulnerable families.

· Allocation of INR 1200 crore for the National Health Policy 2017.

· Setting up of 24 new Government Medical Colleges and Hospitals by upgrading existing district hospitals in the country.

· Increase in effective duty due to introduction of Social welfare surcharge

BIOCON

· Rationalization of additional deduction of 30% on new employees

· Existing secondary and higher education cess of 3% increased to 4%

· Any capital/ revenue compensation receivable towards termination/modification of business contract taxable as business income

· Introduction of World’s largest government funded health care titled “National Health Protection Scheme” to cover over 10 crore poor and vulnerable families.

· Allocation of INR 1200 crore for the National Health Policy 2017.

· Setting up of 24 new Government Medical Colleges and Hospitals by upgrading existing district hospitals in the country.

· Increase in effective duty due to introduction of Social welfare surcharge

PC JEWELLER

· Rationalization of additional deduction of 30% on new employees

· Existing secondary and higher education cess of 3% increased to 4%

· Comprehensive Gold Policy to be formulated by the Government to consider Gold as a separate asset class

· Consumer friendly and trade efficient Gold Exchanges to be set-up

· Gold monetization schemes to be revamped

· BCD rate on Imitation jewellery increased from 15% to 20%

· BCD rate on specified precious stones increased from 2.5 to 5%

· Social welfare surcharge of 3% on gold and silver

TVS MOTOR

· Rationalization of additional deduction of 30% on new employees

· Existing secondary and higher education cess of 3% increased to 4%

· Deemed dividend under section 2(22)(e) to attract dividend distribution tax@ 30%

· Any capital/ revenue compensation receivable towards termination/modification of business contract shall be taxable as business income

· BCD on specified parts & accessories of motor cycles increased to 15%

· BCD on CKD/CBU imports of motor vehicles, motor cars, motor cycles increased from 20% to 25%

· Increase in effective duty due to introduction of Social welfare surcharge

Exide Industries

· Rationalization of additional deduction of 30% on new employees

· Existing secondary and higher education cess of 3% increased to 4%

· Deemed dividend under section 2(22)(e) to attract dividend distribution tax@ 30%

· Any capital/ revenue compensation receivable towards termination/modification of business contract shall be taxable as business income

· BCD on specified lithium-ion batteries increased from 10% to 20%, effective BCD rate remains unchanged

· Increase in effective duty due to introduction of Social welfare surcharge

Godrej industries

· Rationalization of additional deduction of 30% on new employees

· Existing secondary and higher education cess of 3% increased to 4%

· Deemed dividend under section 2(22)(e) to attract dividend distribution tax@ 30%

· Any capital/ revenue compensation receivable towards termination/modification of business contract shall be taxable as business income

· Renewed focus on rural wages and jobs growth likely to spur growth for consumer packaged goods companies

· BCD rate on specified furniture products increased from 10% to 20%

· BCD rate on perfume and specified beauty products increased from 10 to 20%

· Increase in effective duty due to introduction of Social welfare surcharge

UNITED BREWERIES

· Rationalization of additional deduction of 30% on new employees

· Existing secondary and higher education cess of 3% increased to 4%

· Deemed dividend under section 2(22)(e) to attract dividend distribution tax@ 30%

· Any capital/ revenue compensation receivable towards termination/modification of business contract shall be taxable as business income

· Renewed focus on rural wages and jobs growth likely to spur growth for consumer packaged goods companies

· Increase in effective duty due to introduction of Social welfare surcharge

Tata Global

· Rationalization of additional deduction of 30% on new employees

· Existing secondary and higher education cess of 3% increased to 4%

· Deemed dividend under section 2(22)(e) to attract dividend distribution tax@ 30%

· Any capital/ revenue compensation receivable towards termination/modification of business contract shall be taxable as business income

· Renewed focus on rural wages and jobs growth likely to spur growth

· BCD rate on orange fruit juice increased from 30% to 35%

· BCD rate on cranberry juice increased from 10% to 50%

· BCD rate on fruit juices and vegetable juices increased from 30% to 50%

· Increase in effective duty due to introduction of Social welfare surcharge

APOLLO HOSPITALS

· Rationalization of additional deduction of 30% on new employees

· Existing secondary and higher education cess of 3% increased to 4%

· Deemed dividend under section 2(22)(e) to attract dividend distribution tax@ 30%

· Any capital/ revenue compensation receivable towards termination/modification of business contract shall be taxable as business income

· Introduction of World’s largest government funded health care titled “National Health Protection Scheme” to cover over 10 crore poor and vulnerable families.

· Allocation of INR 1200 crore for the National Health Policy 2017.

· Setting up of 24 new Government Medical Colleges and Hospitals by upgrading existing district hospitals in the country.

· Increase in effective duty due to introduction of Social welfare surcharge

APOLLO TYRES

· Rationalization of additional deduction of 30% on new employees

· Existing secondary and higher education cess of 3% increased to 4%

· Deemed dividend under section 2(22)(e) to attract dividend distribution tax@ 30%

· Any capital/ revenue compensation receivable towards termination/modification of business contract shall be taxable as business income

· BCD on truck and bus radial tyres increased from 10 % to 15%

· Increase in effective duty due to introduction of Social welfare surcharge

BERGER PAINTS

· Rationalization of additional deduction of 30% on new employees

· Existing secondary and higher education cess of 3% increased to 4%

· Deemed dividend under section 2(22)(e) to attract dividend distribution tax@ 30%

· Any capital/ revenue compensation receivable towards termination/modification of business contract shall be taxable as business income

· Renewed focus on rural wages and jobs growth likely to spur growth

· Increase in effective duty due to introduction of Social welfare surcharge

VOLTAS

· Rationalization of additional deduction of 30% on new employees

· Existing secondary and higher education cess of 3% increased to 4%

· Deemed dividend under section 2(22)(e) to attract dividend distribution tax@ 30%

· Any capital/ revenue compensation receivable towards termination/modification of business contract shall be taxable as business income

· BCD on LCD, LED, OLED panels and on specified parts increased to 15%

· BCD on specified parts for manufacture of LCD, LED TV panels increased to 10%

· Increase in effective duty due to introduction of Social welfare surcharge

AJANTA PHARMA

· Rationalization of additional deduction of 30% on new employees

· Existing secondary and higher education cess of 3% increased to 4%

· Deemed dividend under section 2(22)(e) to attract dividend distribution tax@ 30%

· Any capital/ revenue compensation receivable towards termination/modification of business contract shall be taxable as business income

· Introduction of World’s largest government funded health care titled “National Health Protection Scheme” to cover over 10 crore poor and vulnerable families.

· Allocation of INR 1200 crore for the National Health Policy 2017.

· Setting up of 24 new Government Medical Colleges and Hospitals by upgrading existing district hospitals in the country.

· Increase in effective duty due to introduction of Social welfare surcharge

AMARA RAJA BATTERIES

· Rationalization of additional deduction of 30% on new employees

· Existing secondary and higher education cess of 3% increased to 4%

· Deemed dividend under section 2(22)(e) to attract dividend distribution tax@ 30%

· Any capital/ revenue compensation receivable towards termination/modification of business contract shall be taxable as business income

· BCD on specified parts & accessories of motor vehicles, motor cars and motor cycles increased to 15%

· BCD on specified lithium-ion batteries increased from 10% to 20%, effective BCD rate remains unchanged

· Increase in effective duty due to introduction of Social welfare surcharge

DIVI’S LABS

· Rationalization of additional deduction of 30% on new employees

· Existing secondary and higher education cess of 3% increased to 4%

· Deemed dividend under section 2(22)(e) to attract dividend distribution tax@ 30%

· Any capital/ revenue compensation receivable towards termination/modification of business contract shall be taxable as business income

· Introduction of World’s largest government funded health care titled “National Health Protection Scheme” to cover over 10 crore poor and vulnerable families.

· Allocation of INR 1200 crore for the National Health Policy 2017.

· Setting up of 24 new Government Medical Colleges and Hospitals by upgrading existing district hospitals in the country.

· Additional Health and Wellness Centres to be established.

· Increase in effective duty due to introduction of Social welfare surcharge

DISH TV

· Rationalization of additional deduction of 30% on new employees

· Existing secondary and higher education cess of 3% increased to 4%

· Legislative amendments to align the provisions of Income tax with Income computation and Disclosure Standards

· Chapter VI-A deduction denied in case of belated return

· Increase in the effective duty due to Introduction of social welfare surcharge

MINDTREE

· Rationalization of additional deduction of 30% on new employees

· Existing secondary and higher education cess of 3% increased to 4%

· Legislative amendments to align the provisions of Income tax with Income computation and Disclosure Standards

· Chapter VI-A deduction denied in case of belated return

· allocation doubled on digital India program to INR 3073 crores in 2018-19

· Initiation of national program to direct efforts in Artificial Intelligence

· Increased focus on cyber physical systems to support Artificial Intelligence, robotics, digital manufacturing, big data analytics and IOT

ADANI ENTERPRISES

· Rationalization of additional deduction of 30% on new employees

· Existing secondary and higher education cess of 3% increased to 4%

· Legislative amendments to align the provisions of Income tax with Income computation and Disclosure Standards

· Chapter VI-A deduction denied in case of belated return

· Profits from service contracts to be computed on percentage completion method

· Increase in the effective duty due to Introduction of social welfare surcharge

· BCD exempted on specified solar tempered glass for manufacture of solar cells, panels and modules

ARVIND LTD

· Rationalization of additional deduction of 30% on new employees

· Existing secondary and higher education cess of 3% increased to 4%

· Deemed dividend under section 2(22)(e) to attract dividend distribution tax@ 30%

· Long term capital gains tax @10% introduced on sale of listed shares

· Legislative amendments to align the provisions of Income tax with Income computation and Disclosure Standards

· Tax neutral transfers between holding and its subsidiaries excluded from the scope of ‘income from other sources’

· Increase in the effective duty due to Introduction of social welfare surcharge

· Total outlay of INR 7148 crore has been proposed for the textile sector in 2018-19

SRF

· Rationalization of additional deduction of 30% on new employees

· Existing secondary and higher education cess of 3% increased to 4%

· Deemed dividend under section 2(22)(e) to attract dividend distribution tax@ 30%

· Long term capital gains tax @10% introduced on sale of listed shares

· Legislative amendments to align the provisions of Income tax with Income computation and Disclosure Standards

· Tax neutral transfers between holding and its subsidiaries excluded from the scope of ‘income from other sources’

· Increase in the effective duty due to Introduction of social welfare surcharge

RELIANCE COMMUNICATIONS

· Rationalization of additional deduction of 30% on new employees

· Existing secondary and higher education cess of 3% increased to 4%

· Deemed dividend under section 2(22)(e) to attract dividend distribution tax@ 30%

· Long term capital gains tax @10% introduced on sale of listed shares

· Legislative amendments to align the provisions of Income tax with Income computation and Disclosure Standards

· BCD levied at 5% on preform of silica for use in the manufacture of telecommunication cables

· Increase in the effective duty due to Introduction of social welfare surcharge

· Total outlay of INR 10000 crore has been proposed for creation and augmentation of Telecom infrastructure in 2018-19

PAGE INDUSTRIES

· Rationalization of additional deduction of 30% on new employees

· Existing secondary and higher education cess of 3% increased to 4%

· Deemed dividend under section 2(22)(e) to attract dividend distribution tax@ 30%

· Long term capital gains tax @10% introduced on sale of listed shares

· Legislative amendments to align the provisions of Income tax with Income computation and Disclosure Standards

· Tax neutral transfers between holding and its subsidiaries excluded from the scope of ‘income from

· Increase in the effective duty due to Introduction of social welfare surcharge

· Total outlay of INR 7148 crore has been proposed for the textile sector in 2018-19

TATA COMM

· Rationalization of additional deduction of 30% on new employees

· Existing secondary and higher education cess of 3% increased to 4%

· Deemed dividend under section 2(22)(e) to attract dividend distribution tax@ 30%

· Long term capital gains tax @10% introduced on sale of listed shares

· Legislative amendments to align the provisions of Income tax with Income computation and Disclosure Standards

· BCD levied at 5% on preform of silica for use in the manufacture of telecommunication cables

· Increase in the effective duty due to Introduction of social welfare surcharge

· Total outlay of INR 10000 crore has been proposed for creation and augmentation of Telecom infrastructure in 2018-19

Disclaimer: The data have been provided by EY. Neither EY nor Business Standard is liable for any action taken on the basis of this data

First Published: Fri, February 02 2018. 01:29 IST
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