Will the much-debated long-term capital gains (LTCG) tax get a relook in the Budget? One idea being floated is to bring all savings under a scheme of taxation in which saving is tax exempt when it is made, tax exempt when it grows with accrued returns but taxed when it is withdrawn as income. If the monetised savings or a part of it is reinvested in an asset, this saving, too, too qualifies to be tax exempt. Sounds like a great concept on paper, but will it get buy-in at the North Block? Wait and watch
STREET PULSE: Where we stand Nifty futures on Singapore Exchange traded 18 points lower at 7 am (IST), signalling weakness ahead on Dalal Street. Asian stocks extended a global selloff as China took more drastic steps to combat the coronavirus, while bonds found favour on expectations central banks would need to keep stimulus flowing to offset the likely economic drag.
HERE'S WHAT TO WATCH  | MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.8 per cent in early Asian trading on Tuesday. Japan's Nikkei was 0.7 per cent down, Australian shares stumbled 1.3 per cent and South Korea's Kospi index skidded 2.6 per cent. |
| Overnight, US stocks fell sharply.The Dow fell 453 points, or 1.6 per cent, to 28,535, S&P500 index dropped 51.84 points and the Nasdaq 175 points, or 1.9 per cent. |
| Oil futures slipped, extending losses into a sixth session as the spread of a new virus in China and other countries raised concerns about a hit to economic growth and slower oil demand. Brent crude was down 15 cents, or 0.3 per cent, to $59.17, after touching a three-month low of $58.50 on Monday. |
| The rupee weakened by 10 paise to close at 71.43 against the US currency on Monday, extending losses for a third straight session, amid fast-spreading coronavirus outbreak in China stoking fears about more trouble for the global economy. |
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What the Budget May Have… Budget 2020 is expected to give a renewed push to disinvestment and asset monetisation as the government strives for capital creation and investment promotion in the economy by augmenting non-tax revenue. A top official told ET that the budget is likely to relax long-term capital gains tax and dividend distribution tax norms, besides setting a clear road map for the government to sell or significantly cut its stake in select PSUs and giving the proceeds to other shareholders for funding their capex.
Read More Suitors for Wockhardt Unit… Cipla and Asian buyout fund PAG are vying with each other to acquire a big chunk of Wockhardt's domestic formulations business for Rs 2,100-2,800 crore ($300-400 million) as the indebted pharmaceutical company looks to deleverage its balance sheet, said people aware of the matter. Both submitted binding offers recently, they said. Habil Khorakiwala-led Wockhardt is expected to finalise one bidder and begin final negotiations to conclude the transaction.
Read More Air India up for 100% Sale… The government invited bids for a 100% stake in Air India, aiming to finalise a sale of the lossmaking national carrier by the end of March, after having sweetened the deal by absorbing about two-thirds of its debt. Control will be retained by a domestic entity as overseas investors can only acquire as much as 49% under the rules. Apart from Air India, also on sale are Air India Express and a 50% stake in ground-handling company Air India Singapore Airport Terminal Services.
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Big Bull Under Sebi Lens… Billionaire investor Rakesh Jhunjhunwala is being probed by Sebi for alleged insider trading in the shares of Aptech, an education firm owned by him and family. The markets regulator is also investigating the role of other family members who are shareholders, as well as some board members, including investor Ramesh S Damani and director Madhu Jayakumar. Besides Jhunjhunwala, wife Rekha, brother Rajeshkumar and mother-in-law Sushiladevi Gupta were called for questioning by Sebi on January 24.
Read More India in Recession?… Nobel laureate and economist Abhijit Banerjee on Monday said the country could be passing through a phase of recession, and there is "nothing in the data" that suggests otherwise. Banerjee, during an address at the Kolkata Literary Meet, also said the priority of the government should be on refinancing the banking sector, which is in "doldrums". He also advocated imposition of wealth tax and more redistribution. The economist said the banking and infrastructure sectors were in need of funding from the government.
Read More Meanwhile... Chinese shift has begun… Over a dozen new China-domiciled corporations, venture funds and family offices are aggressively stepping up investment conversations with Indian startups as they look to move beyond the slowing market for technology investment in Asia's largest economy. Boyu Capital, Horizons China, Sinovation Ventures, Legend Capital, ZhenFund, XVC Capital and Integrated Capital are among the new funds scouting for deals, people who have engaged with these firms said.
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