Bajaj Auto to increase accounting provision for deferred tax by ₹211 crore due to indexation benefit withdrawal
4 months ago

Bajaj Auto to increase accounting provision for deferred tax by ₹211 crore due to indexation benefit withdrawal

Live Mint  

Bajaj Auto Ltd on Monday said due to withdrawal of the indexation benefit and change in tax rate, the accounting provision for deferred tax on investment income needs to be restated. “In compliance with Ind AS 12, the Company was making accounting provisions for Deferred Tax as per applicable law on fair value gains on these investments,” Bajaj Auto said in a statement. “The current accounting provision for Deferred Tax created by the Company would need to be increased by ₹211 crores to recognise the aforesaid change,” the company said. “A provision in respect of this cumulative one-time impact will be made while computing the Profit After Tax and in reporting the financial results for Q2 of FY 2024-25,” said Bajaj Auto.

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History of this topic

On discarding indexation for long-term capital gains | Explained
4 months, 3 weeks ago

On discarding indexation for long-term capital gains | Explained

The Hindu  

The story so far: Finance Minister Nirmala Sitharaman’s announcement in the Union Budget about doing away with indexation for computing long-term capital gains tax has not drawn much enthusiasm. A memorandum explaining the provisions of the Finance Bill, stated that this was to “ease computation of capital gains for the taxpayer and tax administration”. At the erstwhile 20% rate, they …

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