Month: June 2021

United States: Tax on Cryptocurrency

The IRS has added a question on the first page of Form 1040 for the year 2020, requiring taxpayers to declare any virtual currency transactions.

The federal tax rate on bitcoin capital gains varies between 0% and 37%. (FY2020). When you buy cryptocurrency, you should keep track of the price you paid. This is the crypto asset’s cost basis. The selling price is the disposal price when the crypto is sold. The capital gain is the difference between the selling price and the cost basis. The fair market value of virtual money in US dollars as of the date of payment or receipt will be demanded of taxpayers.

Any gains or losses from a crypto asset held for less than a year are taxed at the highest marginal tax rate applicable to your taxable income. Any losses can be used to offset income tax up to $3,000 in total. Any additional losses might be carried over to the next year.

If the cryptocurrency was kept for more than a year, the appropriate tax rate is substantially lower, ranging from 0% to 15% to 20%, depending on the individual or combined marital income.

Canada: Tax on Cryptocurrency

Cryptocurrencies, such as Bitcoin, are legal in Canada. You can use digital currencies to buy products and services on the Internet and in stores that accept digital currencies,” according to a Financial Consumer Agency of Canada webpage on digital currencies. Open exchanges, often known as digital currency or cryptocurrency exchanges, allow you to purchase and sell digital currency. Depending on the nature of the trading operations, Crypto attracts either CGT or income tax in Canada. If the income comes from a business, the entire amount is taxed, however, capital gains are only taxed 50% of the time.

United Kingdom

The HMRC has published a crypto handbook in the United Kingdom. This guide explains how crypto assets are taxed. Individuals who hold crypto assets as a personal investment, mainly for capital appreciation or to make specific purchases, may be subject to CGT when they sell them.

Australia: Tax on Cryptocurrency

Australia defines crypto as an asset. The trading stock rules, not the CGT regulations, apply if bitcoin is held for sale or exchange in the regular course of business. The sale of bitcoin held as trading stock in a firm generates ordinary income, and the cost of acquiring cryptocurrency held as trading stock is tax-deductible.

Crypto that has been kept for more than 12 months by an Australian tax resident qualifies for the 50% CGT deduction if the CGT rules apply. ⁷ This effectively indicates that 50% of the net gain is exempt from taxation. A CGT event will be triggered if crypto is disposed of but not taken from a crypto wallet. Instead of the actual sale price, we’ll use the crypto’s AUD market value on the day of disposal.

Netherlands: Tax on Cryptocurrency

The tax system of the Netherlands differs from that of the Commonwealth countries. It levies a wealth tax rather than a capital gains tax. Rather, a presumed interest is levied in the Netherlands on the value of all assets minus all liabilities at the start of the tax year. The presumed interest is subject to a flat 31 percent tax rate in 2021, 30 percent in 2020.

Germany

Because it does not recognize cryptocurrency as a monetary currency, commodities, or stocks, Germany has been labeled a “crypto tax haven.” Crypto, on the other hand, is considered private money. This distinction is critical since private sales in Germany result in tax benefits. Tax exemption is available for private sales of up to €600.

Reliance Jio

According to the firm, Reliance Jio plans to accelerate growth through JioPhone, Enterprise Data, and other digital avenues via the recent spate of launches, coupled with new digital app offerings.

“Thus, we assign an EV/EBITDA multiple of 20 times on FY23 EBITDA, with a target price of Rs 847 per share (for its 66% stake). The higher multiple captures the digital revenue opportunity, potential tariff hikes, and opportunity in the Feature Phone market (not built into our estimates),” Motilal Oswal Institutional Equities has said.

Retail business

The firm values Reliance Retail’s core business at 35 times FY23E EV/EBITDA and assign 4 times to Connectivity, arriving at target price of 755 – after excluding the recent 10% stake sale.

“Our premium valuation multiples capture the accelerated growth in new store openings, digital commerce, and the new JioMart platform,” the brokerage has said.

Oil to chemicals business

“Vaccination drives appear to be gaining momentum the world over, with large economies such as the US and India inoculating more than 4m daily. This is expected to soon revive demand for transportation fuels, thus boosting gross refining margins. Since the company has stopped disclosing GRMs separately, we build in EBITDA of USD107/134/mt for FY22/FY23E (vis-à-vis USD73-84/mt reported over 3Q- 4QFY21) – on the back of improvement in refining and petchem margins,” Motilal Oswal Institutional Equities has said.

“Using SOTP, we value the Oil to chemicals business at FY23E EV/EBITDA of 7.5x, arriving at a valuation of Rs 764 per share for the standalone business, and add Rs 68 for the E&P assets. We ascribe an equity valuation of a) Rs 847/share to RJio on FY23E 20x EV/EBITDA and b) Rs 755/share to Reliance Retail on FY23E 35x EV/EBITDA, factoring in the recent stake sale. Reiterate Buy, with target price of Rs 2,430 per share,” Motilal Oswal Institutional Equities has said.

The shares of Reliance Industries was last seen trading at Rs 2,257 on the BSE.

Disclaimer

The information above is based on the report of Motilal Oswal Institutional Equities. Investing in stocks are risky and investors should do their own research. The author, the brokerage firm or Greynium Information Technologies are not responsible for any losses incurred due to a decision based on the above article. Investors should hence exercise due caution as markets have run-up significantly. Please consult a professional advisor.

Quant Tax Plan Direct Fund

Quant Tax Plan Direct-Growth Fund has a total asset under management (AUM) of Rs 204 crore, with a current net asset value (NAV) of Rs 204.02 as of June 21, 2021. The 1-year returns of the Quant Tax Plan Direct-Growth are 117.83 per cent and the fund’s 3-year and 5-year returns are 30.95% and 24.63% respectively. The healthcare, financial, FMCG, communication, and metals sectors comprise the majority of the fund’s holdings. ITC Ltd., ICICI Bank Ltd., Bharti Airtel Ltd., State Bank of India, and ICICI Securities Ltd. are the fund’s top five holdings. The fund has an expense ratio of 0.50% and one can start SIP with a minimum amount of Rs 500 with no exit load.

BOI Axa Tax Advantage Direct-Growth Fund

The fund presently has Rs 453 crore in assets under management (AUM) and a NAV of Rs 97.88 as of June 21, 2021. The fund has returned 71.96 per cent in the last year, with returns of 18.44 per cent and 20.25 per cent in the previous three and five years, respectively. The fund has a 1.67 per cent expense ratio, which is higher than the category average, and the minimum SIP is Rs 500 with no exit load. The fund’s top equity sectors are chemicals, healthcare, financial services, and technology, with HDFC Bank, ICICI Bank, Infosys, Divi’s Laboratory Ltd., and Laurus Lab Ltd. as its top five holdings.

Mirae Asset Tax Saver Fund

Mirae Asset Tax Saver Fund Direct-Growth returns have been 70.47 per cent over the last year. It has returned 21.47% and 22.93% over the last 3-years and 5 years. The bulk of the capital in the fund is allocated across the financial, technology, energy, auto, and healthcare sectors. HDFC Bank Ltd., ICICI Bank Ltd., Infosys Ltd., Axis Bank Ltd., and Tata Consultancy Services Ltd. are the fund’s top five holdings. The fund presently has Rs 7,940 crore in assets under management (AUM) and a NAV of Rs 30.12 as of June 21, 2021. The fund has an expense ratio of 0.48% and the fund’s 1 to 5-year returns are higher than the category average returns.

Canara Robeco Equity Tax Saver Fund

Canara Robeco Equity Tax Saver Direct has a 1-year growth rate of 67.23 per cent. Over the previous three to five years, it has returned 20.77 per cent and 19.04 per cent, respectively. The fund has the equity sector allocation across the Financial, Technology, Construction, Automobile, Engineering sectors. Infosys Ltd., HDFC Bank Ltd., ICICI Bank Ltd., Larsen & Toubro Ltd., and Tata Consultancy Services Ltd. are among the top five holdings of the fund. As of June 21, 2021, the fund has Rs 2,227 crore in assets under management (AUM) and a NAV of Rs 109.31. The fund has a 0.87 per cent expense ratio and one can start a SIP with a minimum of Rs 500.

Best Tax Saver Funds In Terms of Returns

Conclusion

ELSS schemes have outperformed other Section 80C tax-saving investment choices such as PPF, ULIP, NSC, NPS and tax-saving bank FDs in terms of returns. The explanation for this is that, according to Value Research, Tax Saver Funds have delivered excellent 5-year average SIP returns of 21.46 per cent. When we compare this return to the most common tax-saving strategies listed above, we can discover that they have beaten them by a large percentage. Because ELSS funds have the most long-term wealth-building potential, they can be an effective instrument for attaining long-term financial objectives if you invest for at least 3 to 5 years. Since nobody can promise future success, examining historical returns can only demonstrate the performance of tax saver funds under varied market behaviour. For higher returns, you should invest in Equity Mutual Funds with a direct plan option. Because direct plans have a lower expense ratio than growth plans, as a result, they can provide better long-term returns if you stay invested for 5-years.

Disclaimer

The views and investment tips expressed by authors or employees of Greynium Information Technologies, should not be construed as investment advise to buy or sell stocks, gold, currency or other commodities. Investors should certainly not take any trading and investment decision based only on information discussed on GoodReturns.in We are not a qualified financial advisor and any information herein is not investment advice. It is informational in nature. All readers and investors should note that neither Greynium nor the author of the articles, would be responsible for any decision taken based on these articles. Please do consult a professional advisor. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and authors do not accept culpability for losses and/or damages arising based on information in GoodReturns.in

Dalmia Bharat

Motilal Oswal Retail Research has recommended buying the stock of Dalmia Bharat. The company is among the top five cement manufacturers in the country. The research firms sees a number of factors like sharp price hikes, capacity additions to boost financial performance.

“In the near term, supplies are expected to be impacted by logistic issues, which would support prices. We expect market share gains to continue, supported by 25% capacity expansion over the next year,” the Motilal Oswal Retail Research has said.

According to the firm, the plan to double capacity provides long-term volume growth visibility. Interestingly, Dalmia Bharat is also paying back debt, which should reduce interest costs.

“The company has repaid its gross debt of Rs 22.2 billion in FY21 from operating cash flows, working capital release, and the dilution of the disputed mutual fund units – which were credited back to the company in the last quarter. Despite the ongoing expansion, the balance sheet remains well under control,” the research firm has said.

“We remain positive on Dalmia Bharat and have given the price hike in eastern India and major expansions coming on board. Valuations are reasonable at 10.4x FY23E EV/EBITDA and EV/capacity of $112 per tonne. We reiterate Buy, with target price of Rs 1,905 per share (at 10 times FY23E EV/EBITDA),” Motilal Oswal Retail Research has said.

Shares of Dalmia Bharat were trading at Rs 1,831 on the BSE.

Maruti Suzuki

Emkay Global expects a strong recovery in passenger vehicle volumes due to easing of lockdowns, healthy order-book and improving macros and sees Maruti Suzuki among the key beneficiaries. The broking firm has set a target price of Rs 8,500 on the stock of Maruti Suzuki with a buy call.

“Maruti Suzuki customer base includes conservative customers who seek reliable products, better fuel efficiency, low maintenance costs, strong service/spares network and better resale values. To sustain share over medium term, Maruti Suzuki will also have to address the desirability factor. As the customers are upgrading to higher-priced vehicles (especially UVs), it is important for Maruti Suzuki to have successful launches in these categories. Media reports refer to upcoming products such as Jimny off-roader, mini SUV (larger Wagon R), small hatchback and jointly developed products with Toyota,” the firm has said.

Shares of Maruti were last seen trading at Rs 7159 on the NSE.

NTPC

Motilal Oswal Institutional Equities has placed a buy call on the stock of NTPC with a price target of Rs 145 in its latest report. Power major, NTPC recently reported a very strong set of quarterly numbers for the period ending March 31, 2021.

“NTPC has taken steps to improve its renewables footprint. The 3GW of renewable capacities are under construction and expected to be commissioned over the next two years. Moreover, even as the company gradually scales up on its renewables journey, we expect continued capitalization for its thermal projects to drive 12% growth in regulated equity over FY21-23E. We have a Buy rating on NTPC, with a DCF-based target price of Rs 145 on the stock,” the broking firm has said.

Disclaimer

The above stocks are based on the report of Motilal Oswal and Emkay Global. Investing in stocks are risky and investors should do their own research. The author, the brokerage firms or Greynium Information Technologies are not responsible for any losses incurred due to a decision based on the above article. Investors should hence exercise due caution as markets have run-up significantly. Please consult a professional advisor.