HCL Technologies hits record high; stock up 24% in three months

Shares of HCL Technologies hit a record high of Rs 1,125 per share, up 2.6% in intra-day trade, surpassing their previous high of Rs 1,107 per share recorded on April 23, 2018, on the BSE.
The stock was trading above its share buyback price of Rs 1,100.

In the past three months, HCL Technologies has outperformed the market by surging 24% after the company announced the share buyback proposal. In comparison, the S&P BSE Sensex was up 4% during the period.

The stock had turned ex-date for buyback of shares on August 30, 2018. IT services firm said its Rs 40 billion buyback offer will commence on September 18 and will close on October 3.

Analysts at JP Morgan overweight on HCL Technologies with Jun-19 price target of Rs 1,180 (previously Rs 1,050).

“Our price target is based on a one-year forward P/E multiple of 15.5x mildly increased from 15x as weaker INR allows HCL Technologies to make investments that it might have otherwise deferred helping the cause of revenue growth. We factor in higher margins in FY19 vs. FY20 as gains from the weaker INR (in FY19) will get passed on to clients effective FY20,” the brokerage firm said in IT Services sector update.

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Bengaluru's Embassy Group partners with Amazon to power smart homes

As it marks its entry into the premium-affordable housing segment, Bengaluru-based real estate giant Embassy Group is turning to technology to woo customers in an effort to offer a truly differentiated experience from its rivals.
The company is dabbling with the idea of smart homes and has roped in Amazon to fit every apartment in its upcoming Embassy Edge project in North Bengaluru with Echo smart speakers and accompanying smart devices.
Homeowners will be able to control lights and appliances with their voice and will even be able to remotely monitor their homes through Amazon’s service. The project will have a little over 800 homes and will be completed in the next four years.
“Being the first in real estate to bring this integration of voice-enabled homes in India, we believe that this will revolutionize the residential sector. We will be replicating this concept in our other residential projects across micro markets,” said Jitu Virwani, Chairman and Managing Director, Embassy Group.
Virwani’s idea is that the company needs to do something different to modernise homes for the tech savvy buyers especially in a city like Bengaluru. The Embassy Edge project which will offer 1 to 3 bhk apartments at a cost ranging from Rs 3.6 million to Rs 8.1 million will largely target buyers working in the city’s IT and ITeS sectors.

I-T to attach shares if Cairn Energy fails to pay Rs 10,395 cr tax

The tax department has slapped a fresh notice on UK's Cairn Energy Plc seeking to take over the firm's residual 9.8 per cent stake in its erstwhile Indian subsidiary to recover Rs 10,395 crore retrospective tax demand.

The tax department had in an unprecedented move had last month appropriated Rs 1,500 crore of tax refund due to Cairn Energy and another Rs 666 crore of dividend income due to it for three years from its erstwhile subsidiary (now Vedanta) to recover the Rs 10,247 crore of tax plus interest.

It has again written to Cairn Energy on June 26 asking it to repay the balance tax due, failing which it will take over its 9.8 per cent shareholding in Cairn India, a source said requesting not to be named as the information is not yet public.

In the notice, the Income Tax Department gave the British firm 15 days to repay or face attachment of shares.

The department moved to recover the tax after Cairn Energy lost an appeal against the retrospective tax demand in tax tribunal ITAT. It on March 31 issued a notice seeking Rs 10,247 crore tax by June 15. As the company failed to pay, it went ahead to take over the refund and dividend income.

The source said about Rs 2,200 crore recovered so far does not even fully cover the interest due on principal tax demand of Rs 10,247 crore which was levied over alleged capital gains the company had made in 2006 when it transfered India assets to a newly created firm, Cairn India and listed in on stock exchanges.

The outstanding tax demand is Rs 10,395 crore, he said, adding an interest at the rate of 1 per cent will keep adding up every month on the tax demand.

"Cairn Energy has time till July 11 to reply to the notice sent by tax recovery officer under Income Tax Certificate Proceedings rules. If the company does not reply, then the department is likely to issue warrant which will be followed by a formal share attachment notice," the source said.

Auditors' to disclose property related transactions above Rs 20,000 to I-T

Auditors will now have to disclose details of transactions exceeding Rs 20,000 in connection with immovable property in reports, which they file with the Income Tax (I-T) authorities on behalf of their clients.

Under the Income Tax Act, professionals earning gross receipts of more than Rs 50 lakh and companies with a turnover of Rs one crore and above are required to get their accounts audited. The turnover limit for companies has been increased to Rs two crore from Assessment year 2018-19.

So far, auditors in their report had to mention details of loans, and repayment exceeding Rs 20,000 in the tax audit report filed along with Income Tax returns. Henceforth, all transactions exceeding Rs 20,000 relating to immovable property will have to be mentioned in a specified format in the report.

The move will increase transparency in financial dealings and help check tax evasion.

As per the notification by the I-T department, auditors will have to furnish details of transactions regarding "each specified sum" exceeding Rs 20,000 from financial year 2016- 17. These would include money paid or received with regard to immovable property.

The auditor report will also have to specify details of the mode of payments whether account payee or bearer cheque, or through electronic system.

Through the notification, the tax department has revised the form 3CD for tax audit report under section 44AB of Income Tax Act.

READ INCOME TAX RELATED NEWS HERE

Nearly 15% growth in direct tax collections for FY18: CBDT

IT RETURN- Provisional figures for direct tax collections up to June 2017 show net collection at Rs 1.42 lakh crore, which was 14.8 percent higher than net collection for the corresponding period of last year.

A Central Board of Direct Taxes (CBDT) statement released on Thursday said the net direct tax collection represented 14.5 percent of total budget estimates of direct taxes for fiscal 2017-18 (Rs. 9.8 lakh crore).

Corporate Income Tax (CIT) gross collections grew at 4.8 percent, while the growth under Personal Income Tax (PIT), including Securities Transaction Tax (STT) was 12.9 percent.

However, after adjusting for refunds, the net growth in CIT collections was 22.4 percent, while that of PIT was of 8.5 percent.

The CBDT informed that refunds amounting to Rs.55,520 crore have been issued between April and June, 2017, which is 5.2 percent lower than refunds issued during fiscal 2016-17 in the same period.

An amount of Rs. 58,783 crore was received as advance tax up to June 30, 2017, reflecting a growth of 11.9 percent over advance tax payments for the corresponding period of last year.

The growth in Corporate Advance Tax was 8.1 percent and that in Personal Advance Tax was 40.3 percent.

I-T raids Axis bank in Noida, finds Rs 60 cr in 20 shell company accounts

On a trail of a jeweller who allegedly sold bullion worth Rs 600 crore, the Income Tax Department on Thursday unearthed Rs 60 crore from the accounts of 20 shell companies in a raid at an Axis bank branch at sector 51 in Noida.

A team of the department on Thursday raided the Axis bank branch in Noida and searched the accounts.

In the search, Rs 60 crores were found in 20 accounts of as many shell companies, an official said, adding that the I-T team was scanning the records to trace the directors of these companies.

An I-T team had earlier found that a jeweller in Noida had sold gold bricks worth Rs 600 crore after demonetisation and has accounts in the same branch of the bank.

The jeweller's name has not been disclosed by the officials yet.(http://www.business-standard.com/article/pti-stories/i-t-raids-axis-bank-finds-rs-60-cr-in-accounts-of-shell-116121500585_1.html)