This lowers the tax rate for each portion, potentially reducing the overall tax rate from 30% to 5% or 10% for each member, saving a significant amount in taxes.

India’s affluent are increasingly seeking ways to minimize their tax liabilities, going beyond conventional deductions under Section 80C. High Net-worth Individuals (HNIs) are exploring various avenues to save taxes, as highlighted by Business Standard. HNIs in India commonly utilize Limited Liability Partnerships (LLPs) as a tax-saving strategy. LLPs offer a reduced tax rate of 34.94%, contrasting with the highest individual tax bracket of 42.74%. Unlike corporations that face double taxation on profits (at the corporate level and upon distribution to shareholders), LLPs are taxed only once on their overall income. This is because profits distributed among LLP partners are exempt from taxation.

Example: An HNI investing in a company through an LLP would pay a lower tax on dividends compared to directly owning shares. If an HNI invests directly in a company (X Ltd) and receives dividends, the dividend income is taxed at the highest individual tax rate (42.74%). If the HNI holds shares in X Ltd through an LLP, the effective tax rate on dividends received is lower (34.94%) because LLPs are taxed at a lower rate than individuals. LLPs can be formed with family members, allowing HNIs to manage investments and share profits efficiently. “LLPs offer pass-through taxation, where business income is not taxed at the company level but at the individual partner level. This can be beneficial for profit distribution and tax planning, especially for businesses with high profit margins. However, one will need to ensure that their business operations align with the LLP structure for optimal tax advantages,” said Ritika Nayyar, Partner, Singhania and Co.

Point to note: An LLP set up in India will broadly be a tax resident of India, despite temporary change in residential status of any partner. Share of profits received from a LLP are fully tax exempt, despite the residential status of the partner.

Hindu Undivided Family (HUF): By creating a Hindu Undivided Family, an individual can split their income among family members, reducing the total tax burden. Each member of the HUF, including the HUF itself, enjoys the benefit of separate tax slabs and deductions. “ For example, Ashok splits Rs 10 lakh of family business income across four family members in the HUF, each earning Rs. 2.5 lakh. This lowers the tax rate for each portion, potentially reducing the overall tax rate from 30% to 5% or 10% for each member, saving a significant amount in taxes,” said Amay Jain, Senior Associate, Victoriam Legalis – Advocates & Solicitors.

Multiple PAN cards: An HUF can have a separate PAN card from its members, allowing income splitting and potentially lowering the overall tax burden.

Deductions: HUFs can claim deductions available to individuals under Section 80C (investments, PPF, etc.). Tax-efficient asset transfer: Assets can be transferred to the HUF, and income generated might be taxed in the HUF’s hands, potentially at a lower rate. Angel Investing: Investing in promising startups can yield significant returns, and the Income tax Act offers tax deductions for investments in startups under Section 54GB. This can be a great way to support innovative ventures while potentially lowering your tax burden. One should conduct thorough due diligence before investing, as startups are considered inherently risky.

Nayyar explains this in detail: Example: Lets say Mr X after thorough due diligence invests Rs 1 crore (Rs. 10 million) in the startup. Under Section 54GB of the Income Tax Act, they may be eligible to deduct a portion of this investment from their taxable income, subject to certain conditions. Potential tax Benefit, assuming 50% of the investment (Rs. 50 lakh) qualifies for deduction under Section 54GB, Mr X could potentially save Rs. 50 lakh (deduction) x 30% (assumed tax bracket) = Rs. 15 lakh on their taxes. Qualifying for the full deduction under Section 54GB might have requirements such as holding the investment for a specific period and the startup meeting certain criteria Participation in VCFs that invest in a basket of startups may offer tax benefits under specific schemes.

This allows you to diversify your portfolio across multiple high-growth potential ventures while potentially enjoying tax advantages. Partner with a reputable wealth management firm to navigate the complexities of VCF investments.

Example: When one sells the shares in the fund after 12 months, can take benefit of lower rate of tax @20% as applicable to long term capital gains and if such proceeds are re-invested as per sec 54F, you do not end up paying taxes even on this sale of shares, subject to specified conditions.

Instagram, the social media platform owned by Meta, has unveiled modifications to its ranking algorithms. These changes aim to prioritize content from original creators in the recommendations feed. Previously, accounts with large followings could garner broader visibility, even if their content was merely reposted from others. This practice has drawn criticism from Instagram creators, particularly those sharing original content or new to the platform, as their posts were often constrained by the platform’s ranking algorithms.

Following the criticism from creators, Instagram head Adam Mosseri announced changes to the platform ranking system to reward original content on the platform. Mosseri in his video post on Instagram said “We’re going to remove aggregators from recommendations if they repeatedly share unoriginal content that they didn’t enhance. To aggregator accounts out there: I recommend looking for ways to make content your own so you can continue to be recommended to people who don’t follow you.”

In addition, Instagram said it will replace reposted content in recommendation feed with the original content. Moreover, the social media platform said it will show a label to highlight reposted content that will be visible to the followers of the account reposting content. Though the label is removable for now, Instagram said it might not allow creators to remove such labels on reposted content in future.

The changes in ranking system algorithms are slated to roll out in the coming months. In other news, Meta is testing its artificial intelligence-powered chatbot Meta AI with select users across its popular social media apps like WhatsApp, Messenger and Instagram in India. The chatbot service from the social media giant will allow users to generate text and images, summarise stories, and help with other tasks such as proofreading, editing, and translation, among others. In September last year, the company launched Meta AI in beta as a conversational assistant for WhatsApp, Messenger, and Instagram.

India’s eight infrastructure sector grew 5.2 per cent in March 2024 driven by positive growth in production of cement, coal, electricity, natural gas, steel and crude oil as compared to March 2023. The combined index of eight core industries (ICI) which measures the combined and individual performance of the production of eight core industries — cement, coal, crude oil, electricity, fertilizers, natural gas, refinery products and steel – “eased to 5.2 per cent with five of the components reporting a flattening trend in the sequential months,” notes Aditi Nayar, Chief Economist ICRA.

Cement production increased by 10.6 per cent in March 2024 over March 2023, coal production increased by 8.7 per cent yoy and electricity generation increased by 8.0 per cent in March 2024, displaying healthy expansion and maintained a robust pace in April 2024, with rising heat likely boosting agricultural and household demand, notes Nayar. Crude oil increased by 2.0 per cent yoy, but two segments displayed a contraction, namely petroleum refinery products with production declining by 0.3 per cent and fertilisers production declining by 1.3 per cent in March 2024 over March, 2023.

Natural gas production increased by 6.3 per cent yoy. Steel production increased by 5.5 per cent in March, 2024 over March, 2023. Its cumulative index increased by 12.3 per cent during 2023-24 over corresponding period of the previous year. Nayar expects IIP growth to moderate somewhat in March 2024, as the leap year effect fades at 3.5-5 per cent in March 2024.

This was on account of the reduction in gas cost by 6 per cent yoy due to easing of APM gas price and efficient gas sourcing. This helped ATGL pass on the benefit of lower gas price to consumers. For the quarter the company achieved 59 per cent increase in net profit at Rs 165 crore, 49 per cent increase in EBIDTA at Rs 305 crore and revenue from operations atRs 1,257 crore.

In terms of operations, the overall volume was up by 20 per cent yoy in Q4 FY24 and the CNG network increases to 547 stations inclusive of 108 DODO/CODO stations. The PNG household increased to 8.20 lakh homes. The year saw Barsana CBG plant phase 1 commissioned and spread of 606 EV charging points across 14 states. Suresh P Manglani, ED & CEO of Adani Total Gas credits the transformative year for ATGL to a robust operational and financial performance.

The company is on track to invest in creating world class infrastructure across its geographical areas (GAs) and diversifying into areas adjacent to core CGD business. According to Manglani, the company is incubating new business opportunities in the areas of compressed biogas, EV charging infrastructure, and lng for trucking and mining (LTM).

During the quarter, it commissioned the first phase of one of the India’s largest diversified feedstock-to-CBG plant at Barsana in Mathura and also expanded the e-mobility footprint to 23 states. “These, along with LTM are the next big growth drivers and ATGL is steadily executing a sustainable business plan around these neo-opportunities,” said Manglani.

In the midst of fluctuating global markets, India’s affinity for gold remains steadfast, with the country’s demand for the precious metal witnessing a notable surge in the March quarter. According to the latest report by the World Gold Council (WGC), India’s gold demand escalated by 8% during this period, reaching a substantial 136.6 tonnes. This uptick, despite gold prices soaring to historic highs, underscores the enduring importance of gold in India’s economic landscape.

A key driver behind this surge in demand was the robust economic environment prevailing in the country. Despite the challenges posed by escalating gold prices, India’s economy demonstrated resilience, providing a conducive backdrop for heightened gold consumption. Additionally, the Reserve Bank of India (RBI) played a significant role in bolstering gold demand through its aggressive gold purchases. The central bank’s proactive approach contributed to the overall momentum in gold acquisition during the quarter.

In terms of value, India’s gold demand witnessed a remarkable 20% annual increase, soaring to Rs 75,470 crore during the January-March period of this year. This surge in value was attributed to both volume growth and an 11% rise in quarterly average prices.

The jewelry sector, a cornerstone of India’s gold consumption, experienced a 4% growth in demand, reflecting the enduring cultural and social significance of gold adornment in the country. Simultaneously, investment demand witnessed a substantial 19% surge, indicating a growing appetite for gold as a financial asset among Indian investors.

Sachin Jain, CEO of WGC’s Indian operations, emphasized the resilience of India’s gold demand despite the prevailing price rally. He anticipates India’s gold demand for the year to range between 700 and 800 tonnes, albeit potentially trending towards the lower end of the spectrum if prices continue their upward trajectory. The recent rally in gold prices, which saw the precious metal reach a record high of Rs 73,958 per 10 grams, has stimulated investment demand while tempering consumption for jewelry. This phenomenon underscores the complex interplay between economic factors and consumer behavior in shaping India’s gold market dynamics.

While the March quarter witnessed a notable surge in gold demand, certain challenges loom on the horizon. Jain highlighted the potential impact of the ongoing price rally on demand, especially amidst the backdrop of the ongoing election process in the country. The upcoming months may witness a moderation in demand, driven by heightened price sensitivity among consumers and the prevailing electoral fervor. However, despite these short-term fluctuations, the long-term outlook for India’s gold demand remains positive, underpinned by strong cultural and seasonal factors.

Looking beyond the immediate market dynamics, the WGC report also shed light on key trends shaping India’s gold landscape. Scrap supplies, which represent recycled gold, witnessed a notable 10% increase from the previous year, reaching 38.3 tonnes in the March quarter. This surge in scrap supplies was driven by the price rally, prompting some investors to liquidate their holdings. Despite this influx of recycled gold into the market, buying during festivals remained subdued, with weak demand observed during the recent Gudi Padwa festival, traditionally considered auspicious for gold purchases.

However, Jain remained optimistic about the outlook for upcoming festivals, such as Akshaya Tritiya, noting that demand is expected to be moderate despite prevailing price pressures. This resilience in demand during festive seasons underscores the deeply ingrained cultural significance of gold in India, transcending short-term price fluctuations.

Furthermore, the report highlighted the substantial increase in the RBI’s gold reserves, which surged by 19 tonnes in the March quarter, surpassing last year’s net purchases. The central bank’s continued accumulation of gold underscores its strategic approach towards diversifying reserves and safeguarding against economic uncertainties.

In conclusion, India’s gold market remains dynamic and resilient, navigating through price fluctuations and economic uncertainties with fortitude. Despite the challenges posed by soaring prices and geopolitical uncertainties, the underlying demand for gold in India remains robust, driven by cultural, social, and economic factors. As the country progresses on its growth trajectory, gold is poised to retain its status as a cherished asset and a symbol of prosperity for generations to come.

The country’s oil imports saw a decline in value by 15.2 percent year-on-year during April-February of the last fiscal year, supported by falling global crude oil prices and increased purchases of discounted Russian crude.

India’s net oil import bill is projected to rise to USD 101-104 billion in the current fiscal year, according to a statement from ICRA on Tuesday. This increase from USD 96.1 billion in 2023-24 is influenced by several factors, including the potential impact of the Iran-Israel conflict on oil prices. The rise in oil prices could further elevate India’s oil import expenses.

ICRA’s analysis highlights the importance of Russian oil imports in reducing India’s oil import bill. The savings from purchasing discounted Russian crude amounted to USD 7.9 billion in the 11 months of 2023-24, up from USD 5.1 billion in the previous fiscal year. However, any persistence of low discounts on Russian crude purchases could lead to a widening of India’s net oil import bill.

Moreover, geopolitical tensions, such as the conflict between Iran and Israel, pose additional risks to India’s oil imports. A USD 10 per barrel increase in crude oil prices could raise India’s net oil imports by USD 12-13 billion, subsequently enlarging the current account deficit (CAD) by 0.3 percent of GDP. If the average crude oil price reaches USD 95 per barrel in FY2025, the CAD is expected to widen to 1.5 percent of GDP. India’s heavy dependence on oil imports, accounting for more than 85 percent of its crude oil needs, underscores the significance of these developments.

The country’s oil imports saw a decline in value by 15.2 percent year-on-year during April-February of the last fiscal year, supported by falling global crude oil prices and increased purchases of discounted Russian crude. The share of crude petroleum imported from Russia surged to 36 percent in April-February FY2024 from 2 percent in FY2022, while imports from West Asian countries declined. This shift resulted in substantial savings in India’s oil import bill, compressing the CAD/ GDP ratio.

However, the extent of discounts on Russian crude narrowed sharply over the fiscal year, potentially reducing the savings related to its purchase. Despite this, Indian refiners continued to capitalize on the discounted oil following Western nations’ reluctance to engage with Russian oil post the Ukraine war.

Additionally, the recent conflict in the Middle East raises concerns about crude oil import routes, especially through the Strait of Hormuz, a crucial passage for India’s oil and LNG imports from Qatar. The conflict between Iran and Israel adds another layer of uncertainty to India’s oil import dynamics. Overall, the evolving geopolitical landscape and fluctuations in global oil prices significantly impact India’s oil import bill and current account deficit. As India navigates these challenges, strategic decisions in energy policy and diplomatic engagements will play a crucial role in safeguarding its economic interests.

Mark Zuckerberg, CEO of Meta, said it’s “time to move on” from the speculation about a cage fight with Elon Musk, whom he said is not serious about it. Taking to his social media Threads application account, Zuckerberg said, “I think we can all agree that Elon isn’t serious, and it’s time to move on. offered a real date. Dana White offered to make this a legit competition for charity.

Elon won’t confirm a date, then says he needs surgery, and now asks to do a practise round in my backyard instead. If Elon ever gets serious about a real date or official event, he knows how to reach me. Otherwise, it’s time to move on. I’m going to focus on competing with people who take the sport seriously.” The tension between Zuckerberg and Tesla CEO Musk intensified after the initial success of Meta’s Threads, which is the biggest competitor to X (formerly known as Twitter), social media platform in July. The Thread app is similar to X, the Musk-owned platform, which got 30 million users on its first day.

Earlier, the Tesla CEO claimed that his and Zuckerberg’s fight will be live streamed on X as well as Meta’s platforms and will likely take place in Italy. The Meta owner dropped a statement on Threads and requested netizens not to buy into whatever Musk says. “I love this sport, and I’ve been ready to fight since the day Elon challenged me. If he ever agrees on an actual date, you’ll hear it from me. Until then, please assume anything he says has not been agreed on,” Zuckerberg wrote.

Zuckerberg further said that he was not holding his breath for Musk and would share the details of the fight when he was ready. He added, “I’m not holding my breath for Elon, but I’ll share details on my next fight when I’m ready. When I compete, I want to do it in a way that puts a spotlight on the elite athletes at the top of the game. You do that by working with professional organisations like the UFC or ONE to pull this off well and create a great card.” Musk took notice of Zuckerberg’s post and reacted to it with a series of tweets.

“If Zuck really wants a lesson in why there are weight categories in fighting so badly, I could just head over to his house next week and teach him a lesson he won’t soon forget… Otherwise, we will do it as soon as the arena in Italy is ready,” Musk wrote. “Or we could do both and consider next week just a practise session,” he added.