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Kirtan A Shah Profile picture
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1 Feb, 5 tweets, 1 min read
Immediate take away for the taxpayers & investors from the #Budget2021

Direct Tax

(1) No change in the income tax slabs for individuals & company
(2) No tax returns to be filled by individual above 75 years of age if the source of income is only pension & interest (1/n)
(3) No tax audit upto 10cr turnover (earlier 5cr) 4 businesses with 95% transactions done digitally
(4) Tax holiday for start-ups extended by 1 year, till March 2022
(5) In case of tax disputes – time limit of reopening the cases reduced to 3 years from earlier 6 years (2/n)
(6) Advance tax liability on dividend income only after declaration or payment of dividend
(7) Additional tax deduction of 1.5L shall be available for loans taken upto march 2022 for affordable housing (3/n)
Investors

(1) Interest on your PF contribution above 2,50,000/year to be taxed from April 1, 2021
(2) Yearly premium in ULIPs over 2,50,000/year will be taxed at 10% capital gains (same as MF's)
(3) No TDS on REITs (4/n)
(4) Rationalization of customs duty on Gold & Silver (More details awaited but there can be a reduction in customs duty)
(5) Propose to notify rules to eliminate double taxation for NRIs on foreign retirement funds

Nothing more to follow except the above (**END**)

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More from @KirtanShahCFP

Kirtan A Shah Profile picture
4 Feb
A primer on 'Investing in Debt Mutual Funds' for retail investors

Do hit the re-tweet and help us educate more investors

Have also started a telegram channel to discuss investments; you can join using this link – t.me/kirtanshahcfp (1/n)
(Q1) What r the challenges of investing in deposits (Banks/Corporates)?
a. Concentration & Default Risk – Most investors invest their entire corpus in 2-3 deposits. If either of the deposits default, a large chunk of the corpus is lost (2/n)
b. Tax inefficiency – Taxed at ur slab rates. If a deposit pays 6% right now, post tax is 6% - 30% = 4.2%. This does not beat inflation
c. Illiquidity Risk – If u invest in a deposits for 3 years, to exit before that, you will be charged a penalty of 1% interest (3/n)
Read 25 tweets
Kirtan A Shah Profile picture
29 Jan
A basic primer on the Indian Paint sector

With the listing of Indigo paints, JSW entering the paint sector & now Grasim announcing to invest 5,000 cr in the sector, lets explore,
-Products
-Industry
-Company

Do hit the ‘re-tweet’ and help us educate more investors (1/n)
Lets start with PRODUCTS

India paint industry is broadly divided into two,
(1) Decorative Paints (used mainly in residential & office infrastructure)–75% of the total paints market
(2) Industrial Paints (used in Auto & other industrial uses)-25% of the total paints market (2/n)
Decorative Paints is further classified as
a. Primer & Putty–They r applied 2 the wall 2 fill the cracks in the wall & make it smooth b4 painting. It also gives a lasting effect to the paint
b. Thinner–Its mixed with the paint 2 reduce the viscosity,applying becomes easy (3/n)
Read 24 tweets
Kirtan A Shah Profile picture
22 Jan
A basic premier on the banking sector, demystifying commonly used terms,
CASA
Wholesale Banking
Net Interest Income (NII)
Cost of Liability
Advances Growth
Gross v/s Net NPA
Provisions
SLR/CRR
Capital Adequacy Ratio
Net Interest Margin (NIM)

Do hit the 're-tweet' (1/n)
Banking, as a business is simple to understand, you borrow money (liability for the bank as the bank needs to pay back) and lend (asset for the bank as the bank is expected to receive it bank), the difference between the borrowings & lending is banks income (2/n)
Where all can they borrow from?

(a) Savings Account (SA)
(b) Current Account (CA)
(c) Fixed Deposit (FD)
(d) Recurring Deposit (RD)
(e) Certificate of Deposits (CD)
(f) Bonds etc. (3/n)
Read 29 tweets
Kirtan A Shah Profile picture
14 Jan
Market PE at 40 and yet the market is not falling, why? Getting asked this question multiple times. Here's a thread covering ‘very basic’ premier on valuation for my retail investor friends.

Do hit the ‘re-tweet’ and help us educate more investors (1/n)
For us to be able to comprehend the situation, we need to understand 4 very basic valuation matrixes
(1) Trailing EPS
(2) Forward EPS
(3) Trailing PE
(4) Forward PE

Formula

EPS = Profit After Tax / Number of outstanding Shares
PE = Market Price / EPS (2/n)
So what's a trailing EPS?

So in March 2020, RIL generated a Profit after tax (PAT) of 39,354 cr. The number of outstanding shares of RIL is some 676.21 cr. which means the 39,354 cr of PAT belongs to the 676.21 cr. shareholders, right? (3/n)
Read 21 tweets
Kirtan A Shah Profile picture
8 Jan
In such a low interest rate scenario, what if I tell you, there is a product, which pays 8.5%, tax free, default risk free & also gives you deduction under 80C, would you invest?

Follow this thread on EPF v/s VPF

Hit the ‘re-tweet’ and help us educate more investors (1/n)
In the western world, 1s u retire, ur medical, pension etc. is borne by the government. This is 1 lagging bit in India 4 various reasons where we don’t have social security schemes. To counter this, government runs schemes like NPS, EPF etc. (2/n)
We have written about NPS before & hence will not talk about it here; u can read our thread on the same. In this thread, we will focus on educating u on Employee Provident Fund & Voluntary Provident Fund & y u can allocate some investments here (3/n)

Read 27 tweets
Kirtan A Shah Profile picture
26 Dec 20
In this #IPO frenzy market, lets talk (Thread) about some basics around
-Angle/VC/PE
-Allotment process
-IPO Funding
-Grey Market

Hit the ‘re-tweet’ & help us educated more investors (1/n)
Why do companies come out with an IPO?

(a) Funding needs
- Business expansion plans
- Debt payoff

(b) Non-Funding requirement
- Enhancing corporate stature
- Exit options to large investors like the VCs & PEs (2/n)
While most of us believe IPOs are for funding requirements, you deep dive and understand it’s more of an exit channel for large investors (VC/PE). Let me explain the same concept from a start-up's perspective (3/n)
Read 25 tweets

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