The Hindu Business Line : IDFC adversely affected

The removal of Section 10 23(G) of the Income Tax Act could adversely impact the profitability of Infrastructure Development Finance Corporation (IDFC). A substantial proportion of income received in the form of interest and dividends by IDFC was so far eligible for relief under this Section. This was why tax incidence, including deferred tax was a mere 6 per cent for IDFC, while it was more than 20 per cent for other banks, such as State Bank of India, ICICI Bank and Punjab National Bank. The impact on return on assets, and consequently the valuation, of IDFC could be severe.

More Stories on : Budget | Financial Institutions

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Short-term credit at 7 pc — Farmers to get from kharif season

Registrars, share transfer agents under service tax ambit — `12% levy is bad news for AMCs'

Bank deposits to get 80C deduction — Recapitalisation bonds to be converted into tradable securities

A mature financial sector

A draft of demands

Banks to cut lending rates on farm loans

Superannuation scheme to regain favour

Bankers hail move on recap bonds

IDFC adversely affected

NBFC granted audience

Ideal for long-term investor

Cartoon