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

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

This EY analysis looks at the announcements in Finance Minister Arun Jaitley’s Union Budget 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

· Budget 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