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Middle-class to get tax benefits in Budget?

June 19, 2024 - 11:53am
India’s industry lobby groups have asked officials of the Finance Ministry consider personal tax benefits for the country’s middle-class and a simplification in direct tax regime in the upcoming Union Budget announcement.In a meeting with Revenue Secretary Sanjay Malhotra, CII President Sanjiv Puri advocated for marginal tax relief for incomes up to Rs 20 lakh and called for reduced excise duty on petrol and diesel. He noted that while Brent crude prices have dropped by 40 per cent, pump prices in Delhi have only fallen by Rs 1.8 per litre.Certain sectors in India have been impacted due to skewed consumer spending, as highlighted in the country’s latest GDP readings. This gulf between India's enviable GDP growth rate figures and the slowing consumer demand seem to be a spot of bother for certain businesses. Sops aimed at reducing tax burden are likely to have a positive impact on consumer spending in the country.ALSO READ: Fin Min considering income tax rate cuts to boost consumptionConsumer companies are optimistic about FY25 prospects owing to the IMD's forecast of plentiful monsoon. Puri also proposed increasing the annual PM-KISAN payout from Rs 6,000 to Rs 8,000 and raising minimum wages under the government’s labour scheme MGNREGA. He argued that these measures would boost disposable income and stimulate consumer spending. "The middle class is currently taxed at a rate of 30%, leaving them with little disposable income for savings and other needs. We suggested that the 30% tax slab should apply only to incomes above Rs 40 lakh," news agency ANI quoted Mukul Bagla, chair of the direct taxes committee at PHDCCI as saying. FICCI has proposed simplifying the capital gains tax system by streamlining it into two or three broad categories based on asset types, holding periods for long-term status, and eligibility for indexation benefits. They suggest categorizing assets into three groups: equity instruments, debt, and other assets, with specific rates set for both long-term and short-term gains. FICCI also recommends uniform tax rates for residents and non-residents, eliminating the current distinctions. "Our suggestions have focused on maintaining the growth momentum, while seeking simplification for ease of doing business and reducing litigation. Where litigation has started, the idea should be to find a workable solution for everyone," said Subhrakant Panda, the chamber's immediate past president.
Categories: Business News

Akme Fintrade IPO opens. Should you subscribe to the issue?

June 19, 2024 - 9:59am
Akme Fintrade's Rs 132 crore initial public offer (IPO) opened for subscription on Wednesday. The issue, which closes on June 21, is completely a fresh equity sale of 1.1 crore shares.The funds are being raised primarily to augment its capital base. As per RBI norms, the minimum capital adequacy for an NBFC should be 15%.“As we continue to grow our loan portfolio and asset base, we will require additional capital in order to continue to meet applicable capital adequacy ratios with respect to our business,” the company said. In the coming years, the company plans to grow its loan advances which would require tier-1 capital to comply with the applicable capital adequacy regulations. Through the IPO, it would have adequate capital without any further need of fresh capital in the short to medium term.Akme Fintrade IPO reviewGiven that the domestic NBFC sector is very competitive, analysts advised investors to take a cautious approach to the IPO even though the grey market trends indicate high demand.Also Read: DEE Development Engineers IPO to open tomorrow. 10 things to know before subscribing"We are cautious about Akme Fintrade IPO as the inherent risks outweigh the potential benefits for most investors. Thus, we assign a neutral rating to the public offer," said Swastika Investmart.Akme Fintrade IPO price bandThe IPO is priced in the range of Rs 114-120 per share, where investors can bid for 125 shares in one lot. At the upper end, the company plans to raise Rs 132 crore through the issue.Akme Fintrade GMPIn the unlisted market, the company's shares are trading with a premium of Rs 30.Other detailsAkme Fintrade is a non-banking finance company (NBFC) engaged in rural and semi-urban centric lending solutions to look after the needs and aspirations of rural and semi-urban populace. Its portfolio includes vehicle finance and business finance products for small business owners.The company has a long history of serving rural and semi-urban markets with high growth potential and have maintained a track record of financial performance and operational efficiency through consistently high rates of customer acquisition and retention and low cost expansion into underpenetrated areas.In FY23, the company's revenue from operations grew to Rs 69.51 crore from Rs 67.44 crore in the preceding financial year. Meanwhile, profit after tax jumped multifold to Rs 15.80 crore from just Rs 4.12 crore a year earlier.Gretex Corporate Services is acting as the booking running lead manager for the public offer.
Categories: Business News

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