India’s Crypto Industry Misses Mention in FM’s Budget 2024 Speech, No Change in Taxes

"Social media platforms have been inundated with posts from the Indian crypto and Web3 industries pleading with the government to ""ReduceCryptoTax"" for days now. In the interim budget speech she gave to the parliament on Thursday, February 1, India Finance Minister Nirmala Sitharaman did not even bring up the cryptocurrency industry, despite the outcry. Members of the industry feel a little ignored and let down by this. The business community does not, however, give up hope that the elected government's finalized budget may undergo some modifications following the conclusion of India's general elections later this year.   During her hour-long speech, Sitharaman stated that no tax changes are being implemented at this time.   ""We believe crypto and virtual digital assets can be a force multiplier in achieving 'Viksit Bharat' by empowering individuals at the grassroots level,"" WazirX vice president Rajagopal Menon said in response to the development. Given that India is at a turning point in the cryptocurrency revolution, provisions for long-term financing of domestic crypto projects will benefit both digital public infrastructure and the PM's goal for ""Anusandhan"" (research). We anticipate that these developments will be taken into consideration by the government in addition to our current requests for a reduction of TDS rates to 0.01 percent and an offset of trader losses." The hashtag #ReduceCryptoTax has been trending on X in India since last week, and thousands of posts have called for an update to the country's crypto tax laws. India implemented a 30 percent tax on all cryptocurrency profits in July 2022, in addition to imposing a one percent tax deduction on each cryptocurrency transaction. Industry insiders claim that this tax structure has caused a decline in cryptocurrency-related activity in India, which has resulted in the migration of Web3 talent and businesses to countries with more hospitable tax regimes. Numerous cryptocurrency companies in India have even declared layoffs, citing a decline in users and inquiries about the industry.The three demands from the cryptocurrency community were anticipated to be addressed in this budget: carrying forward losses, similar to stock gains, and flexible tax slabs with a TDS reduction from one percent to 0.01 percent on each transaction.However, these recommendations from the cryptocurrency industry have not been taken into consideration for this interim budget. The finance minister did make an announcement about a plan to provide a 50-year interest-free loan of Rs. 1 lakh crore to assist India's youth, which is seen favorably by the crypto community.      

In November, venture capital funding for Indian businesses hits a six-year low.

In January 2024 and 2023, there were just three late-stage deals, the same as in January 2023. However, the amount of capital fell by 41% to $31 million. It was $52 million in January 2023.Anand Lunia, founding partner of IndiaQuotient, stated in a previous interview with Moneycontrol that there is a discernible decline in series A, B, and subsequent agreements, which has led to a greater concentration at the seed level.The total amount invested in Indian startups is now negative due to the sharp decline in late-stage capital. According to Venture Intelligence statistics, new-age IT businesses reported only $366 million in 53 agreements in January, a decrease of almost 64% from $1,027 million in 48 deals in December. Additionally, the month saw a sharp drop in comparison to the same period last year, down 54% from $792 million in 70 agreements.November marked a six-year low for venture capital (VC) funding to Indian businesses, and the protracted funding winter shows little signs of abating.According to data released by Venture Intelligence on December 1, Indian entrepreneurs closed just $223 million in 35 agreements in November, a decrease of almost 66 percent from $655 million in 52 deals the month before. The only occasion when Indian entrepreneurs saw a decline in investment occurred in January 2017, when there were 43 deals totaling $207 million.Because of the holiday season and the approaching end of the year, November and December often receive less financing. VCs are focusing largely on finishing pending investments rather than taking on new ones. The numbers are declining because of this and investor concern, according to Mitesh Shah, founder of venture capital firm IPV, who spoke with Moneycontrol.Shah clarified that although investors are willing to assess companies, they are now more discerning and are not solely focused on profits. He stated, "People are now considering all of their options before committing to anything." Additionally, the month saw a sharp drop in comparison to November 2022 of $1.02 billion in 62 trades, a 78.2 percent year-over-year fall.Startups changing course The effect is noticeable in the total amount of funds for 2023. The amount of capital received by Indian companies up to November was $7.05 billion, a 71% decrease from $24.36 billion in 2022.  

Interim Budget 2024: Expectations for Indirect Taxation

Given that there is a high priority on increasing participation in global value chains, the expectations from this budget from an Indirect Tax standpoint could be around improving the global trade ecosystem, simplification and streamlining of compliance framework, policy measures to cultivate local competencies and exports as well as focus on simplification and certainty in tax policy. The 2024 Interim Budget is set to be presented in Parliament on February 1. Given that there is a high priority on increasing participation in global value chains, the expectations from this budget from an Indirect Tax standpoint could be around improving the global trade ecosystem, simplification and streamlining of compliance framework, policy measures to cultivate local competencies and exports as well as focus on simplification and certainty in tax policy. The Manufacturing and Other Operations in Warehouse Regulations (MOOWR) Scheme has been conceived to encourage domestic manufacturing to participate in the global value chain by offering duty deferment and location flexibility. The changes made through the Finance Act, 2023, which requires payment of Integrated Goods and Services Tax (IGST) and Compensation cess on goods stored in a warehouse for manufacturing, seem to have been an intent to restrict the benefit to customs duty other than IGST and Compensation cess. This change allows for sector-specific carve-outs and at present such a carve-out has been made for electronics and semiconductor manufacturing sectors. Such change in the scheme seems to have raised uncertainty for manufacturers with expansion plans and importing capital goods. To bolster manufacturing and to support export competitiveness, this uncertainty may be addressed in this Interim Budget. Given the intent of the GST system to have a seamless flow of credits across the value chain, degree of compliance by way of e-invoicing, and buoyant tax collections, the fragments of the erstwhile regime with respect to credit restrictions may be reconsidered. Reducing credit barriers, particularly those pertaining to infrastructure, employee-related expenditures, and construction or immovable property could perhaps benefit businesses by unlocking working capital. Like some of the erstwhile state Value Added Tax (VAT) legislations, a mechanism for allowing refund of unutilised GST input tax credits balance at the conclusion of each fiscal year could be explored, regardless of exports or refund towards inverted duty structure.   

Stock Market Today: Sensex, Nifty edge higher as Budget session commences

Indian indices inched higher as trading session progressed on Wednesday ahead of the FY 2024 interim budget to be presented on February 1. Investors will keenly observe the announcements despite the interim nature of the budget. Share Market Updates: Indian benchmark indices opened near flatline on Wednesday’s trading session amid cues from the global market. BSE Sensex opened 58.60 points, or 0.08 per cent at 71,081.30 while Nifty opened 34.80 points, or 0.16 per cent at 21,487.30. However, the indices inched higher as trading session progressed on Wednesday ahead of the FY 2024 interim budget to be presented on February 1. Investors will keenly observe the announcements despite the interim nature of the budget. Observers will keep an eye on any proposals on taxation on investment in capital markets. Commentators say sentiments are running positive ahead of the anticipated budget. Voltas, M&M Financials and L&T Finance remained among top gainers and Nifty 50 Larsen, Indus Towers, Astral Ltd tanked the most. Nifty Bank traded over 1.5 per cent higher. International oil prices climbed on higher global economic forecasts and sustained tension between the US and oil rich Iran. Brent Oil Futures lost 0.22 points, or 0.27 per cent at $82.31 a barrel while WTI futures traded 0.17 points, or 0.22 per cent at $77.65 per barrel. Indian Rupee closed today’s trade 8 paisa stronger at 83.11 against the American currency. Indian currency opened flat at $83.11 vs Tuesday’s close. The US dollar index gained 0.20 points, or 0.20 per cent 103.42. Asian markets remain mixed after China posted below the expectation industrial results. Chinese manufacturing contracted in January for a fourth straight month, reflecting weak demand and a faltering recovery. Nikkei gained 0.61 per cent and Kospi fell 0.07 per cent. NASDAQ 100 futures slid 0.8 per cent after several tech companies posted Q4 results that fell below the expectations of market analysts. Shares of tech giant Alphabet tanked by 5 per cent while Apple shares fell nearly 1 per cent. Dow Jones Industrial Average ended with minor gains with 133.86 points, or 0.36 per cent at 48,467.31 while S&P 500 ended 2.96 points, or 4,924.97 lower.  

US Judge Dismisses Elon Musks Salary, Asking "Was the Worlds Richest Person Overpaid?"

A Delaware judge asked a straightforward question at the outset of her legal opinion, rejecting Elon Musk's $55 billion Tesla pay deal: "Was the richest person in the world overpaid?"  Her response was unambiguous after nearly a year of thought and 200 pages of legal justification: yes. Indeed, he was.   Chief Judge Kathaleen St. J. McCormick of the Chancery Court agreed with a Tesla investor on Tuesday. The investor had argued that Musk's 2018 pay package did not clearly outline his requirements for earning the money and that the board was riddled with conflicts of interest when it approved the agreement to keep Musk as CEO. Musk has been the richest person in the world for the last two years, but the decision could push him down to third place. The judge's ruling also coincides with Musk's recent statements to analysts that he wants to increase his ownership of the electric vehicle manufacturer in order to keep control of the business, prevent removal, and pursue further advancements in artificial intelligence.     The judge's landmark ruling can be distilled into the following points:However, McCormick pointed out, "Musk does not linger in the traditional comforts of everyday billionaires. For instance, he just has one house." She then referred to his deposition, in which he stated, "I attempted to list it on Airbnb, but Hillsborough has banned Airbnb." They are really stiff." Board Members in Conflict Given that the board members on the compensation committee tasked with negotiating on the company's behalf were "beholden" to the CEO, the judge deemed Tesla's process of approving the pay package to be "deeply flawed". The judge stated that those people included former General Counsel Todd Maron, who had represented Musk during his divorce; Antonio Gracias, who had been Musk's friend for twenty years and frequently accompanied him on vacations; and Ira Ehrenpreis, the chair of the compensation committee, who had known Musk for fifteen years."It is unsurprising that there was no meaningful negotiation over any of the terms of the plan," said McCormick. The judge declared, "They did not take a position 'on the other side' of Musk." "It was a joint endeavor. Negotiations based on positions were absent. Up until he unilaterally dropped his request six months later, Musk provided the terms that the board and compensation committee took into consideration when determining the size and structure of the grant. Musk didn't appear to give a damn about the other information. They were resolved."  

Before polls, stocks are expected to benefit from the governments interim budget.

As the government of Prime Minister Narendra Modi prepares to unveil its final budget before the national elections, traders are keeping a close eye on companies that are involved in road, port, and airport construction. In her budget speech on Thursday, Finance Minister Nirmala Sitharaman is expected to highlight shares associated with state-owned companies and rural spending, as policymakers look for ways to increase demand in the vast rural hinterland.Building infrastructure has become a key component of PM Modi's economic strategy, enabling India to grow faster than any other major economy. The nation's stock markets, which have increased in all but one year since PM Modi took office in 2014, began to show signs of optimism. This month, foreign investors withdrew more than $2.6 billion from local equities, indicating a slight decrease in enthusiasm.  Spending on Infrastructure One of the government's main priorities is the construction of power plants, highways, and tunnels; during the past three years, capital spending has more than doubled.The main winners of this policy push have been the shares of industrial and capital goods companies, ranging from billionaire Gautam Adani's conglomerate to engineering behemoth Larsen & Toubro. Over the past year, BSE Ltd.'s sectoral gauges of capital goods and industrial firms have increased by over 70%, outpacing the benchmark index's 17% gain.   Vinit Sambre, head of equities at DSP Mutual Fund, said over the phone, "A lot of the market performance has come from the capex cycle; equity investors would want to see that momentum continue." "Any guidance on the capex path will be closely watched."      

Zee-Sony merger: NCLT issues notice to Sony to file reply in three weeks

The National Company Law Tribunal (NCLT) on Tuesday accepted a petition by a Zee Entertainment shareholder seeking the merger of its Indian entity with Sony, which was called off last week despite regulatory approvals.The Mumbai-bench of NCLT issued a notice on a petition moved by Mad Men Film Ventures, a shareholder of Zee Entertainment Enterprises (ZEEL), directing Sony Pictures Network India, now known as Culver Max, to file a reply within three weeks.Mad Men Film Ventures on Tuesday filed the petition requesting both ZEEL and Sony to implement the merger as it was approved by the NCLT in August 2023.The tribunal did not agree to the arguments made by the counsel stating that the approval by NCLT was conditional and depended on various conditions, which may be fulfilled or waived off in writing. Last week, the Sony Group Corp called off the merger with ZEEL following a stalemate over who will lead the merged entity.NCLT has kept the next date of hearing on this matter on March 12.The deal stipulated that the merger was to be completed before December 21, 2023, including regulatory and other approvals with a grace period of one month to complete the transaction.This merger could have otherwise created a $ 10 billion media enterprise in the country. The National Company Law Tribunal (NCLT), on Tuesday, accepted a petition filed by a shareholder of Zee Entertainment seeking the merger of Zee Entertainment's Indian entity with Sony, a move that had been called off last week despite obtaining regulatory approvals.The NCLT Mumbai bench issued a notice regarding a petition filed by Mad Men Film Ventures, a shareholder of Zee Entertainment Enterprises (ZEEL) directing Sony Pictures Network India, currently known as Culver Max, to submit a reply within a three-week timeframe.On Tuesday, Mad Men Film Ventures submitted a petition urging both Zee Entertainment Enterprises (ZEEL) and Sony to execute the approved merger, which was sanctioned by the NCLT in August 2023.    

Bajaj Finserv Q3 results: Net profit increases by 22% to Rs 2,158 crore

Bajaj Finserv on Tuesday reported a 22 per cent increase in consolidated net profit to Rs 2,158 crore for the December quarter.The diversified financial services group had earned a net profit of Rs 1,782 crore in the year-ago period.The company's total income increased to Rs 29,038 crore in the third quarter of the ongoing fiscal from Rs 21.755 crore in the year-ago period, Bajaj Finserv said in a regulatory filing.Interest income during the quarter increased to Rs 13,922 crore as against Rs 10,430 crore in the same period a year ago.Total expenses also moved up to Rs 23,609 crore from Rs 17,336 crore in the same quarter a year ago. During the quarter, its subsidiary Bajaj Allianz Life Insurance Company posted shareholders' profit at Rs 108 crore from Rs 81 crore, registering an increase of 33 per cent.Non-life arm Bajaj Allianz General Insurance profit remained flat at Rs 281 crore as compared to Rs 278 crore in the year-ago period.  The profit after tax for Bajaj Housing Finance Ltd, a wholly-owned subsidiary of Bajaj Finance, experienced a growth of 31 per cent. Additionally, Bajaj Finance's consolidated assets under management crossed the milestone of Rs 3 lakh crore in Q3FY24.Bajaj Allianz General Insurance Company (BAGIC) reported a 19 per cent growth in gross written premium. Excluding the impact of bulky tender-driven crops and government health business, the growth remained robust at 20 per cent for the company. Meanwhile, on Monday, Bajaj Finance, a subsidiary of Bajaj Finserv, announced a consolidated net profit of Rs 3,638.95 crore for the December quarter, marking a 22.4 per cent increase from the previous year. In Q3FY24, Bajaj Finance achieved its highest-ever quarterly growth in customer franchise, adding 3.85 million new customers and recording 9.86 million new loans booked.In addition, the interest income of the company during the quarter increased by 33.5 per cent on an on-year basis to Rs 13,922 crore compared to Rs 10,430 crore in the same period of the previous fiscal year. The premium and operating income from the insurance business of the company in the October-December quarter climbed to Rs 12,308.62 crore, as compared to Rs 9,102.50 crore in the same period of the previous year.    

ITC Q3 results: Net profit rises 10.8% to Rs 5,572 crore, beats estimates

India's ITC beat analysts' estimates for third-quarter profit on Monday as the consumer goods giant benefited from higher demand for its products ranging from cigarettes to noodles. The company's profit rose 10.8% to Rs 5,572 crore ($670.3 million) in the three months ended Dec. 31. Analysts on average had expected a profit of Rs 5,148 crore, according to data from LSEG.  The company and peers have benefited as a crackdown oFY23.e smuggling of international cigarette brands reduced competition.Cigarettes account for more than 40% of ITC's topline.  Revenue from operations rose 2% to Rs 17,665 crore, with the cigarettes business growing 3.6%.  Bajaj Finance Ltd on Monday reported a 22.40 per cent year-on-year (YoY) rise in its consolidated third-quarter (Q3) profit for the ongoing financial year 2023-24 (FY24). The figure stood at Rs 3,638.95 crore in Q3 FY24 as against Rs 2,973 crore in the same period last fiscal. During the quarter under review, the non-bank lender's revenue from operations grew 31.28 per cent to Rs 14,161.09 crore from Rs 10,787.25 crore in Q3 FY23. Assets under management (AUM) grew by 35 per cent to Rs 3,10,968 crore as of December 31, 2023 from Rs 230,842 crore in Q3 FY23. Net interest income increased by 29 per cent in Q3 FY24 to Rs 7,655 crore from Rs 5,922 crore in Q3 FY23. In Q3 FY24, gross NPA (non-performing asset) and net NPA stood at 0.95 per cent and 0.37 per cent, respectively, as against 1.14 per cent and 0.41 per cent in the corresponding period last fiscal. The company also said it has provisioning coverage ratio of 62 per cent on stage 3 assets.Pre-provisioning operating profit increased by 27 per cent in Q3 FY24 to Rs 5,539 crore from Rs 4,351 crore in Q3 FY23  

NTPC Q3 results: Profit up 7% at Rs 5,208 cr, income falls to Rs 43,574 cr

State-owned power giant NTPC on Monday reported over 7 per cent rise in consolidated net profit to Rs 5,208.87 crore for the December 2023 quarter, aided by energy sales through trading. Its net profit stood at Rs 4,854.36 crore in the year-ago period, a BSE filing said. The total income fell to Rs 43,574.65 crore in the quarter from Rs 44,989.21 crore in the same period a year ago.The company's expenses rose to Rs 38,782.22 crore from Rs 37,007.51 a year ago. "Revenue from operations for the quarter and nine months ended 31 December 2023 include Rs 2,117.12 crore and Rs 7,012.90 crore, respectively (Previous quarter and nine months Rs 1,984.92 crore and Rs 6,039.14 crore, respectively) on account of sale of energy through trading," the filing said. The Board of Directors of the company has also approved a second interim dividend of 2.25 per share (face value of Rs 10 each) for the financial year 2023-24 in their meeting held on January 29, 2024. The date of payment/dispatch of the dividend shall be February 22, 2024. The Board had declared the first interim dividend of 2.25 per share (face value of Rs 10 each) for the financial year 2023-24 in their meeting held on October 28, 2023, which was paid in November 2023.The average tariff of the company was Rs 4.57 per unit during April-December this fiscal compared to Rs 4.96 per unit a year ago.The gross electricity generation of NTPC increased to 89.467 billion units (BU) during the third quarter against 78.646 BU in the year-ago period. Coal output increased to 8.09 MMT in the quarter from 5.35 MMT a year ago. Its production also increased during April-December this fiscal to 19.92 MMT from 13.75 MMT.Plant load factor or capacity utilisation of coal-based thermal power plants improved to 75.95 per cent in the quarter from 68.85 per cent a year ago.Domestic coal supply improved to 60.23 MMT in the October-December quarter over 52.45 MMT in the same period last fiscal.Gas consumption improved to 2.26 MMSCMD from 1.13 MMSCMD.  Imported coal supply stood at 2.15 MMT in the quarter against 1.57 MMT a year ago.NTPC Group's installed power generation capacity stood at 73,874 MW as of December 31, 2023.  

Share Market Budget 2024 Expectations Live: Top Stocks to watch

On February 1, finance minister Nirmala Sitharaman will present an ‘interim’ budget as the government faces a general election this year, in April-May. There are the top stocks to watch before the interim budget to watch for. The benchmark equity indices ended Monday’s trading session in the positive territory. The NSE Nifty 50 gained 385 points or 1.80% to settle at 21,737.60, while the BSE Sensex soared 1240.90 points or 1.79% to 71,941.57. The broader indices ended in positive territory, with gain led by Largecap and Smallcap stocks. Bank Nifty index ended higher by 576.20 points or 1.28% to settle at 45,442.35. Energy and PSU Banks stocks outperformed among the other sectoral indices while Media and FMCG stocks shed. Over the last 5 days, BPCL shares have seen a notable increase of 3.53%, and in the last month, the growth has been substantial, reaching almost 9.31%. Assessing the medium and long-term performance, the stock has delivered exceptional returns, recording a surge of 30.49% in the last 6 months and an impressive 47.08% over the past year. Year-to-date, the stock has jumped by a noteworthy 9.01%. As the Indian e-commerce market continues to thrive, a robust last-mile infrastructure becomes paramount for seamless and efficient deliveries. Investments in improved road networks, strategically located delivery hubs, and advanced technology solutions for optimal route planning are essential. Particularly crucial in a market with a substantial volume of Cash-on-delivery (COD) orders, enhancing last-mile capabilities not only benefits e-commerce sellers but also offers logistics companies a cost-effective solution, steering away from expensive air deliveries. Additionally, anticipating reduced tax burdens, especially on fuel and operations, would further support the financial sustainability of courier companies, fostering a conducive environment for cost-effective operations. In tandem, advocating for e-commerce-friendly policies can propel the growth of the sector, indirectly benefiting courier companies. Streamlining licensing procedures, minimizing regulatory hurdles, and implementing measures that facilitate the smooth functioning of e-commerce operations will contribute to a thriving logistics ecosystem. Furthermore, recognizing the pivotal role played by small and medium-sized enterprises (SMEs) in the logistics sector, incentivizing their growth through financial support, simplified regulations, and improved access to credit can significantly boost the overall efficiency of e-commerce logistics in India. Finally, changes in taxation policies, especially related to customs duties and tariffs, can substantially impact import costs, providing e-commerce sellers with opportunities to minimize overall expenses and scale up their businesses rapidly,” said Raju Sinha, Chief Business Officer at Fship Logistics.   

Fashion Mogul Passes Elon Musk to Become Worlds Richest Person. What Is His Net Worth?

The world's richest man, Bernard Arnault, is the chairman and CEO of Moet Hennessy Louis Vuitton (LVMH), surpassing Elon Musk. According to Forbes, the French billionaire and his family's net worth increased by $23.6 billion to reach $207.6 billion. The report also stated that on Friday, Mr. Arnault's net worth surpassed that of the Tesla CEO, whose $204.7 billion fell 13% as a result of Mr. Musk losing more than $18 billion.   Since 2022, the two billionaires have reportedly been in a tug-of-war over wealth, with Mr. Arnault apparently taking the lead late in the year.According to the report, LVMH, the company that owns luxury brands such as Dior, Bulgari, and Sephora, has a market capitalization of $388.8 billion, while Tesla's is $586.14 billion.   The top 10 richest people in the world, as per Forbes' real-time billionaires list, are:   The Arnault Family ($207.6 billion) is the owner.   Elon Musk is worth $204.7 billion.   Jeff Bezos ($181.3 billion)$142.2 billion for Larry Ellison   Mark Zuckerberg (139.1 billion)   Warren Buffett ($127.2 billion)Larry Page, worth $127.7 billion   The $122.9 billion Bill Gates   $121.7 billion for Sergey Brin   Ballmer Steve (118.8 billion).   However, the Bloomberg Billionaires Index, on the other hand, claims that Mr Musk is still the richest man in the world, with a net worth of $199 billion wealth.   Elon Musk is followed by the founder of e-commerce giant Amazon Jeff Bezos with $184 billion of wealth, on the list.   On the Bloomberg Billionaires Index, Bernard Arnault has occupied third place with a $183 billion net worth.