Maruti Suzuki India is planning to increase provision for deferred tax liability by around Rs 850 crore due to the withdrawal of indexation benefit while calculating long-term capital gains on debt mutual funds. The company was making accounting provisions for deferred tax liability on fair value gains on these investments.
A one-time impact on profit after tax will be felt in the second quarter of the ongoing fiscal. In the Finance (No.2) Act 2024, the indexation benefit has been withdrawn while calculating long term capital gains on debt mutual funds which were purchased prior to April 1, 2023.
Due to withdrawal of indexation benefit and change in rate of tax from 20 per cent plus surcharge and cess (with indexation) to 12.5 per cent plus surcharge and cess (without indexation), accounting provision for deferred tax liability so created needs to be restated.
Maruti Suzuki India is an automobile manufacturer in India. It provides passenger cars, utility vehicles and vans. The firm also offers pre-owned car sales, fleet management and car financing services.
| Company Name | CMP |
|---|---|
| Tata MotorsPassenger | 360.15 |
| Maruti Suzuki | 13452.25 |
| Mahindra & Mahindra | 3199.35 |
| Hyundai Motor India | 1901.25 |
| Mercury Metals | 35.39 |
| View more.. | |
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