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Has the NIFTY bottomed out?

NIFTY Technical Analysis

On 12th June 2015 the NIFTY closed at 7982.9 well below the 200 day EMA of 8199.72. The Bollinger band is between a high of 8580.53, a mid-point of 8251.44 and a low of 7922.35. The MACD is at -83.58. The ST-MI is at -51.64. The RSI is at 36.12.

NIFTY Chart 12-06-2015
NIFTY Chart as on 12-06-2015

For the trend to reverse the index has to convincingly rise about 300 points from present level to above 8251.44, the RSI above 50, MACD and ST-MI above 0.  

The stock markets are in a secular downward spiral. The NIFTY is decisively below its 200 days exponential moving average. All the sector indices are below their respective 200 days exponential moving average.  From technical analysis view-point, the 200 days either SMA or EMA is the bottom from which prices bounce upwards. But if the 200 DMA is decisively broken, as it now has, it becomes the resistance level. With the earning season almost over, the corporate performance results not being heart warming and no positive trigger on the horizon, in the short run the markets appear to be in a hibernation mode. The markets have been impacted by domestic factors such as poor corporate performance, the honeymoon with a stable government at the center over, expectations of steps taken by the government not yet being not visible. Global factors such as the uncertainties about Greece bail out or exit from Euro zone, possible US rate hike, developments in other conflict zones have all taken a toll on the stock market. Presented here is the NIFTY daily chart which confirms a bearish bias.

The trend may take a while to reverse.


Budget 2017: Highlights

Union Budget 2017-2018

#Rate of Tax on Income on Individuals from Rs. 2.50 Lakhs to Rs. 5 Lakhs reduced from ~10%~ to 5%.


upto 2.5 lakh NIL
2.5lakh to 5 lakh 5%
5 lakh to 10 lakh 20%
above 10 lakh 30%

50 LAKH TO 100 LAKH 10%
ABOVE 100 LAKH 15%

#For Individuals above age of 60 years but less than 80 years

upto 3 Lakh NIL
3lakh to 5 lakh 5%
5 lakh to 10 lakh 20%
above 10 lakh 30%

#For Individuals above age of 80 years upto 3 Lakh NIL
upto 5 lakh NIL

5 lakh to 10 lakh 20%
above 10 lakh 30%

#For Domestic Companies whose total turnover or gross receipts of the P/Y 2015-16 does not exceed Rs. 50 Crores: 25% ; for others 30%. Surcharge remains same as previous year.

#Section 115BBDA: *Income by way of dividend in excess of Rs. 10 lakh* => Tax@10% => ection shall be applicable to all resident assessees except domestic company and certain funds, trusts, institutions, etc

#New Section 194-IB: Individuals or a HUF (other than those covered under 44AB of the Act), responsible for paying to a resident =>any income by way of RENT > Rs. 50k for a month or part of month during the previous year =>TDS @5%.

# *Long Term Capital Assets for Land or Building or Both* => *Period of Holding* reduced from 36 months to *24 months* .

# *Base Year for Computation of Capital Gains shifted from 01.04.1981 to 01.04.2001.*

#Expanding the scope of long term bonds under 54EC: Currently NHAI or RECL bonds were eligible => Now propose to provide that investment in any bond redeemable after three years which has been notified by the Central Government in this behalf shall also be eligible for exemption.

#No notional income for house property held as stock-in-trade: for the period upto one year from the end of the F/y in which the certificate of completion of construction of the property is obtained from the competent authority.

#Section 80-IAC: Extending the period for claiming deduction by start-ups => currently 3/5 years => proposed 3/7 years

#Section 115JAA: MAT / AMT Credit can be carried forward to ~10years~ 15 years.

#Section 80G: Cash donation restricted to Rs. 10,000/-

#Disallowance of depreciation U/s 32 and capital expenditure U/s 35AD on cash payment exceeding Rs. 10,000/-

#Section 40A: Reduction of existing threshold of cash payment to a person from Rs. 20,000/- to Rs. 10,000/-.

#Section 44AD: Measures for promoting digital payments in case of small unorganized businesses: Reduction of Deemed Income from 8% to 6% in case amount is received by an A/c payee cheque or A/c bank draft or use of ECS through a bank account.

#Section 269ST: Restriction on cash transactions of Rs. 3 Lakhs or more

#Section 13A: Transparency in ELECTORAL Funding: Maximum cash donation Rs. 2,000/- and Political Parties to file Income Tax Return U/s 139.

#Section 194D: Insurance Commission: eligible for filing self-declaration in Form.No.15G/15H for non-deduction of tax at source in respect insurance commission.

#Section 44AA: Increasing the threshold limit for maintenance of books of accounts in case of Individuals and HUF carrying on business or profession: Income Rs. 2.50 Lakhs and Total Sales Rs. 20 Lakhs

#Section 194J: Reduce the Rate of TDS from 10% to 2% in case of a person engaged only in the business of operation of call center.

#Section 92BA: person referred to in under section 40A(2)(b) are to be excluded from the scope of section 92BA.

#Section 47: Tax neutral conversion of preference shares to equity shares.

#Sectionn47(vic): Cost of acquisition in Tax neutral demerger of a foreign company: cost of acquisition of the shares of Indian company referred to in section 47(vic) in the hands of the resulting foreign company shall be the same as it was in the hands of demerged foreign company.

#Rationalisation of section 211 and section 234C relating to advance tax: single instalment advance tax benefits to certain assesses.

#Section 244A: Interest on refund due to deductor @1.50% p.m.

#Rationalisation of time limits for completion of assessment, reassessment and re-computation and reducing the time for filing revised return. time for furnishing of revised return shall be available upto the end of the relevant assessment year or before the completion of assessment, whichever is earlier.

#Rationalisation of the provisions in respect of time limits for completion of search assessment.

#ANTI-ABUSE MEASURES: With a view to prevent this abuse, it is proposed to amend section 10(38) to provide that exemption under this section for income arising on transfer of equity share acquired or on after 01.10.2004 shall be available only if the acquisition of share is chargeable to STT.

#New Section 50CA: where consideration for transfer of share of a company (other than quoted share) is less than the Fair Market Value (FMV) of such share determined in accordance with the prescribed manner, the FMV shall be deemed to be the full value of consideration for the purposes of computing income under the head “Capital gains”.

#New Section 94B: interest expenses claimed by an entity to its associated enterprises shall be restricted to 30% of its earnings before interest, taxes, depreciation and amortization (EBITDA) or interest paid or payable to associated enterprise, whichever is less.

#Section 139 (4C): Mandatory furnishing of return by certain exempt entities.

#New Section 234F: Fee for delayed filing of return upto Rs. 10,000/-.

#Section 271J: Penalty on professionals for furnishing incorrect information in statutory report or certificate upto Rs. 10,000/-.

*Service Tax, VAT, Central Excise and Customs*

#Section 96A Clause (d) (Service Tax), 23A Clause (e) (Central Excise) & 28E clause (e) (Customs): “Authority” to mean the Authority for Advance Ruling as constituted under section 28E of the Customs Act, 1962.

#Section 28F (Customs): The Authority for Advance Rulings constituted under section 245-O of the Income-tax Act shall be the Authority for giving advance rulings for the purposes of the Customs Act.

#Section 96C (3) (Service Tax): *Increase the application fee for seeking advance ruling from ₹2500 to ₹10000* on the lines of the Central Excise Act.

#Section 26C (3) (Central Excise): *Increase the application fee for seeking advance ruling from ₹2500 to ₹10000* on the lines of the Income Tax Act.

#Section 32E (5) (Central Excise) & Section 127B (5) (Customs): enable any person to make an application to the Settlement Commission

#Section 32F (5A) (Central Excise) Section 127C (3) (Customs): The Settlement Commission=>*Rectify any error apparent on the face of record* .

#Section 96D (6) (Service Tax) & #Section (Excise): Time Limit Amended=> *Six Months by which Authority shall pronounce its ruling* on the lines of the Central Excise Act.

#Section 26D (6) (Excise): Time Limit Amended=> *Six Months by which Authority shall pronounce its ruling* on the lines of the Income Tax Act.

#Section 28H (3) (Customs): Increase the application fee for seeking advance ruling from ₹2500 to ₹10000 on the lines of the Income Tax Act.

#Section 28I (6) (Customs): Time Limit Amended=>Six Months by which Authority shall pronounce its ruling on the lines of the Income Tax Act.

#Section 30A (Customs): Passenger and crew arrival manifest before arrival in the case of an aircraft or a vessel and upon arrival in the case of a vehicle=>Penalty: ≤₹50000.

#Section 41A (Customs): Passenger and crew departure manifest and passenger name record information of departing passengers before the departure of the conveyance form yet to be prescribed=>Penalty: ≤₹50000.

*NEW* #Section 96HA (Service Tax) & #Section 23-I (Central Excise): Transferring pending application before the Authority for Advance Rulings (Central Excise, Customs and Service Tax) to the Authority constituted under section 245-O of the Income-tax Act

#Section 46 (3) (Customs): Mandatory to file the bill of entry before the end of the next day following the day (excluding holidays)

#Section 7 (Customs): Empowering the board to notify Foreign Post Offices & International Courier Terminals.

#Section 17 (Customs): Rationalization the requirement of the documents for verification of self-assessment.

#Section (49) (Customs): Extending the facility of storage under section 49 to imported goods entered for warehousing before their removal

#Section 27(2): Unjust Enrichment=>The Refund the refund of duty paid in excess by the importer before an order permitting clearance of goods for home consumption is made.

#Section 9 (3) Clause (c): Withdrawal of the exemption to three categories of non-actionable subsidies specified therein from the scope of anti-subsidy investigations.

#Service Tax: Exemption from service tax is being provided in respect of the amount of viability gap funding (VGF) payable to the selected airline operator for the services of transport of passengers.

#Service Tax: Exemption to life insurance to members of the Army, Navy and Air Force under the Group Insurance Schemes of the Central Government, is being made effective from 10th day of September, 2004, the date when services of life insurance became taxable.

#Service Tax: The services of renting of immovable property became taxable => exempts one-time upfront amount payable for grant of long-term lease of industrial plots (30 years or more) by State Government industrial development corporations/undertakings to industrial units from Service Tax.

Company Law Settlement Scheme 2014


Sub: Company Law Settlement Scheme, 2014 –Backlog of Filing of Annual financial Statements & Annual Returns As per Companies Act, 1956 Companies were required to e-File their Annual Financial Statements and Annual Return before specified deadlines. The Companies Act, 2013, has laid down stricter regime of compliance. Defaults involve higher additional fees, prosecution, ultimately disqualification of the Directors in case a Company has defaulted in filing Financial Statements or Annual Returns for three continuous financial years extending to all Companies.Government of India, Ministry of Corporate Affairs, vide its circular No.34 dated 12-08-2014 is offering a one time opportunity for defaulting Companies and Directors who have not filed their Annual Returns, Financial Statements and related documents due for filing on or before 30-06-2014, to file these documents commencing from 15th August, 2014 and ending on 15th October, 2014 and avail of the following:-

  1. Pay Statutory filing fees along with only 25% of actual additional fee payable on the date of filing.
  2. Enjoy immunity from prosecution
  3. Directors will also not be disqualified  

Additionally, defaulting Companies which are inactive may avail the opportunity of designating themselves as ‘Dormant Company’ under Section 455 of the Companies Act, 2013 which enables them to pay reduced fees and minimal compliance.

For details please refer the Circular.

Defaulting Companies are therefore advised to grab this opportunity and take immediate steps to file the pending annual filing documents with the Registrar of Companies before 15th October, 2014.

What is a ‘One Person Company’?

CFI LogoCENTAUR Financial Services Pvt. Ltd.

 Are you an entrepreneur with a business idea and rearing to go but have misgivings about putting your personal assets at risk of business loss and attachment by Creditors and compliance issues? There is a new solution.

The Companies Act, 2013 has created a new form of business titled ‘One Person Company’. Such a legal form of business is available in developed Countries.


1)          The ’’OPC’’ is an entity distinct from its single member and enjoys perpetual existence.

2)          It offers the entrepreneur complete control over the affairs of the business.

3)          It provides the entrepreneur protection of his personal and family assets from being attached by Creditors in case the ‘‘OPC’’ is unable to meet its obligations to creditors.

4)          The assets of the ’’OPC’’ alone are exposed to business risk not the personal assets of the Single Member or the Nominee.

5)          The entire Share Capital is subscribed to by the Single member.

6)          An ’’OPC’’ must have minimum ONE member who will be deemed to be the Director if he subscribed to the Memorandum of Association.

7)          If the single member of the ‘‘OPC’’ dies, the Nominee steps into the shoes of the deceased Member and can continue the business. This provides continuity of the legal entity and smooth transition of management.

8)          An ’’OPC’’ can have more than ONE Director but less than 15 Directors [Sec.149 (1)].

9)          The sole member can enter into a Contract with the ‘OPC’.

10)       Facilitates easier management of the affairs of the ‘OPC’ and compliance with the law.

11)       It gives the business time to grow until it is ready to convert to other forms of Companies.


1)               This form of business entity limits the scope of the business to grow

2)               Once the Paid up Share Capital of the ‘OPC’ exceeds Rs.50 Lacs or the turnover as per last Profit and Loss Account exceeds Rs.2 Crores the ‘OPC’ has to convert itself into a Private or a Public Limited Company. The ‘OPC’ has to file Form_INC -5 (Sec.469 (1); Rule 6(4) of the Companies (Incorporation) Rules, 2014)

3)               If the Sole member wants to induct another person as a Member or transfer part of his shareholding to another person, the ‘OPC’ has to be converted into either a Private Limited Company or a Public Limited Company.

4)               Succession planning is limited to the Nominee who can be changed by the Sole Member at any time with the result the nominee may not have sufficient experience in running the business unless inducted as a Director or Manager.

5)               Control and management of the business becomes more and more difficult as it grows.


‘One Person Company’has been defined in the Companies Act, 2013 as

‘One Person Company’ means a Company which has only one person as a Member [Sec. 2(62)].

 How to form an ‘One Person Company’:

1)     Apply for Directors Identification Number (DIN) in Form_DIR-3 (Section 153 of the Companies Act, 2014 & Rule 9(1) of the Companies (Appointment and Qualification of Directors) Rules, 2014) for self as well as nominee attaching proof of identity and proof of residence of both.

2)     Ascertain availability of the business name and reserve the same by filing Form-INC-1 (Section 4(4) of the Companies Act, 2013 and Rule 8 & 9 of Companies (Incorporation) Rules, 2014)and digitally sign with DSC.

3)     Obtain consent of the Nominee.

4)     Prepare the Memorandum and Articles of Association of the OPC.

5)     File with the MCA/ROC Form_INC-2  (Section 3(1) and 7(1) and of the Companies Act, 2013 and Rule 4, 10, 12 and 15 of the Companies (Incorporation) Rules, 2014)

6)     File Form_inc-3 (Section 3(1) of the Companies Act, 2013 and rule 4(2), (3), (4), (5) & (6) of Companies (Incorporation) Rules, 2014)

7)     File Form_INC-22 (Section 12 (2) & 12 (4) of the Companies Act, 2013 and rule 25 & 27 of the Companies (Incorporation) Rules, 2014)

8)     Pay the appropriate fees


Every attempt has been made to strictly adhere to the definition and procedures relating to the incorporation of an ‘OPC’ as laid down in the Companies Act, 2014 and the related Rules notified there under. References to the Section and relevant Rules have been given in italics.