Budget 2018: Expectations across market and corporate sectors

The government will unveil its budget for the 2018-19 fiscal year on Thursday, with investors expecting increased investment in key areas such as agriculture, and a slew of incentives for businesses.

Disrupted by the roll out of GST and the effects of demonetisation, India's economy is expected to post growth of 6.75 per cent in the 2017-18 fiscal year ending in March, which would be the slowest in three years.

The government is widely expected to increase spending to ensure growth recaptures momentum, but most investors expect it to be prudent as loosening fiscal deficit targets by too much would likely spark a sell-off in the bond market.

Below is a list of expectations across markets and corporate sectors:

TAXES

1) Reduce corporate tax rate to 25 per cent from 30 per cent.

2) Cut Minimum Alternative Tax to 15 per cent from 18.5 per cent.

3) Enhance tax deductions, exemptions for individuals.

4) May tax long-term capital gains in investments.

AGRICULTURE

1) Establish fund to guarantee credit to encourage investment in agriculture sector.

2) Allocate more funds for crop insurance schemes.

3) Increase spending for dams and canals, micro irrigation systems.

4) Provide subsidies for building cold storage to avoid wastage of perishable crops.

5) Reduce fertiliser subsidies.

BANKS

1) Allow full tax deduction for provisioning of non-performing assets at lenders

2) Raise the threshold for tax deduction on the interest paid on bank deposits from current Rs 10,000.

3) Reduce the tenure of tax-exempted retail term deposits to minimum of 3 years from current 5.

4) Allow tax relief for proceedings under insolvency code.

INFRASTRUCTURE

1) Increase investment by 10-15 per cent in roads from previous budget.

2) Provide support for key road projects, including Bharatmala project, which will connect western and eastern India.

3) Increase railways investments by 10 per cent from 2017-18 budget.

IT/TECH

1) Provide greater incentives for digital transactions.

2) Support digital payments infrastructure.

3) Rationalise tariff structure, excise duties for mobile phones, tablet computers.

4) Lower GST rates for telecom services to 12 per cent from 18 per cent.

AUTO

1) Announce policy on scrapping commercial vehicles that do not comply with emission norms if operational for over 15 years.

2) Lower GST rates on electric vehicles, currently at 12 per cent.

REAL ESTATE

1) Set single-window clearance for all real estate projects, especially housing to avoid execution and project delays.

2) Give infrastructure status to real estate to help bring down finance, project costs, make homes more affordable.

3) Reduce GST rate for projects under construction from current 12 per cent

4) Spend more on affordable housing.

5) Reduce GST rate for home purchases to 12 per cent; stamp duty could also be cut.

OIL & GAS

1) Reduce "cess" duty to 8-10 per cent from 20 per cent for oil and gas exploration and production.

2) Set more beneficial GST rates for natural gas.

3) Reduce or exempt city gas distribution companies from excise duty.

4) Exempt LNG imports from paying basic customs duty.

5) Provide subsidy aid to downstream companies selling LPG, kerosene below market prices.

METALS & MINING

1) Decrease in basic customs duty on coking coal across grades.

2) Decrease in export duty on iron ore above certain grade levels.

3) Hike basic customs duty on aluminium scrap to protect domestic industry.

4) Accelerate minerals exploration.

GOLD

1) Cut import tax on gold to 2-4 per cent from 10 per cent to prevent smuggling.

MORE WILL UPDATE SOON!!

    

Budget 2018: Top 9 wealth-creating ideas for investors ahead of Budget for next 2-3 years

The long-term rally could stretch depending on the kind of budget which will be presented by the Government on Thursday.

   

The long-term rally could stretch depending on the kind of budget which will be presented by the Government on Thursday. The short-term corrections and fizzling out of rallies are a part and parcel of the stock markets and there could be one post the event as well.

The Nifty is already above the 11,000 mark after forming a strong support base around 10500-10600 levels during the month of January. We would look to buy on declines towards the mentioned support base and remain bullish until there is a substantial fall below the said levels.

 We expect the government to focus on infrastructure and increase the spending in that segment to bolster building of proper roads, power generation, and boost irrigation. Some relief to the middle classed people in terms of relaxation of taxes would pep the sentiment to a whole new level.

Implementation of DBT, i.e. Direct Benefit Transfer for fertilizers could give a major boost to the sector which is looking ripe to extend gains. Increase in budgetary allocation to the infrastructure sector could shore up the capital goods space.

Other sectors which we will be eyeing would be Consumer Durables as a reduction in GST on household items will be a positive for this industry and also Logistics would benefit indirectly if spending on Infrastructure goes up.

However, with rumors going around for quite some time regarding taxing long-term capital gains from Equity investment can dampen the sentiment for the short term.

As mentioned earlier, the major sectors we expect to be in the limelight would be Infrastructure, Fertilizers, Consumer Durables and Logistics. Also, IT stock can surprise after being laggard for the last couple of years.

Although these stock has moved off late, we believe there is still upside in these stock if someone has 2-3 years preview. We recommend Jain irrigation, Mirza International, Natco Pharma, Tata Sponge, Visaka Industries among mid-cap; State Bank of India, Yes Bank, L&T, Reliance Industries, and Vedanta in the 

 We expect the index to continue rallying towards the 12000-12500 mark, with intermittent declines and sharp pullbacks. Earnings of major companies have been good till now with no major disappointments and with guidance from most corporate being bullish, achieving the above-mentioned target is very likely.

Secondly, this year’s Union Budget holds the key to get a first sense of how the year 2018 is likely to pan out. Having said that, we expect a reformist budget which will benefit the nation in the long-term this time around.

A populist budget, on the other hand, would point out at the short term intentions of the government, which would be concluded to appease people who were majorly affected by the demonetization and the introduction of the goods & services tax (GST).

This government has always put economics before politics ever since it has formed; hence we are bullish on the markets. We also intend to stick to our target of 12500-12500 until the no major shock comes from the global front.

 As mentioned earlier, strong corporate earnings meeting street estimates and optimism pertaining to a few reforms which may be announced in the budget are adding fuel to this rally.

Also, the local liquidity in 2017 and begin of foreign capital during the Jan 2018 has fueled the rally in the market.

This above-mentioned statement in itself indicates room for upside from current levels. We reaffirm our bullish stance on the Equity markets in 2018 and likely to make fresh highs in dollar term.

Sticking to quality stocks from all the segments will offer a greater risk-to-reward as it is the quality of management, earnings and a boost from the government in terms of reforms matter the most.

Overall we believe, that largecaps would give better returns for the year 2018; However, stock specific mid-cap and smallcap stock can continue the momentum on the back of their fundamental performance.

Euphoric times don’t last long is something that everyone knows. Euphoria is usually known once there is a mismatch between Fundamentals and Technicals.

Technically, the markets are looking extremely strong and with the fundamental part of it going hand in hand with it in terms of good earnings, we are sure this is a bull market and in bull, markets declines are steeper and quick while moving higher takes just a little more time.

Having said one should remain cautious in increasing exposure after a strong rally in the last years and wait for the correction to enter these stocks.

If midcaps don’t correct from time to time and keep rallying, such a movement will not be justified and the concept of High Beta Stocks will be disregarded by most people.

Of course, there is a lot of liquidity, but till now whichever company has given out its numbers of the last quarter; most of them have been good. This negates the misconception that fundamentals might not support.

We would recommend him to stick to quality names with sound management and look for a minimum of 2-3 years and don’t expect to get the returns what market generated in 2017.

MORE WILL UPDATE SOON!!

Immediate support seen at 11,000; 5 stocks which can give up to 10% return

Immediate support for the index is seen at 11,000-10,970 levels, holding above these levels index is likely to rally towards 11,360-11,400 levels on the upside.

  

After a long weekend, the market saw a positive start to the week with Nifty50 closing at yet another record high of 11,130 levels with 0.55 percent gain on Monday.

Last week, index gave a breakout above the psychological level of 11,000 with a gap and since then managed to sustain above it, indicating strong bullish bias.

But, the broader market has been trading in contrast to Nifty with Mid and Small cap space seeing a good correction. Thus, the rally has been stock specific and confined to frontline stocks.

Immediate support for the index is seen at 11,000-10,970 levels, holding above these levels index is likely to rally towards 11,360-11,400 levels on the upside.

In Put, Nifty options 10,800 to 11,000 strikes witnessed open interest (IO) addition suggesting base moving higher for the market while maximum OI stood at 10,500.

The Nifty option Put/Call ratio (PCR) of open interest (IO) has seen cooling off from an extreme high of 1.89 post-January expiry to 1.44 levels currently.

India VIX has moved up from 14 levels to 17.89 levels in anticipation of Budget this week as the market may see volatility later in the week.

Here is a list of top 5 stocks which could give up to 10% return in the short term:

Bajaj Auto Ltd: CMP 3364| Stop loss 3290| Target 3650| Return 9%

The stock is in a long-term uptrend forming the higher top and higher bottom formation. For the last three months, the stock has been consolidating broadly in a range of 3380 and 3140 levels.

This consolidation has been above the previous pivotal high of 3120 indicating buying coming in at higher levels. The MACD on the daily charts has moved above neutral level of zero and the stock is likely to see a breakout on the upside.

Thus, the stock can be bought at current levels and on dips to 3335 with a stop loss below 3290 for a target of 3650 levels.

Zee Entertainment Ltd: BUY| CMP 609| Stop loss 593| Target 660| Return 8%

The stock hit a high of 590 in October 2016 and since then it has been trading below it to form a base for the next leg of the rally. A couple of weeks back, the stock witnessed a breakout above this pivotal high of 590 with high volumes indicating buying participation in the stock.

Since then, the stock has been consolidating above breakout level of 590 and sustaining above it. Relative strength index or RSI and Stochastic indicators have given a positive crossover with their respective averages suggesting a change in momentum and the stock is likely to see a breakout on the upside after recent consolidation.

The stock can be bought at current levels and on dips to 600 for a target of 658 levels which is the previous all-time high for the stock. Price has been taking support at 20-days moving average (DMA) which comes at 593 levels, and a stop loss can be placed below this average on a closing basis for long positions.

Tata Steel Ltd: BUY| CMP 783| Stop loss 760| Target 840| Return 7%

The stock is in a strong long-term uptrend forming a higher top and higher bottom formation. The rally had stalled in the month of November and December after hitting high of 735 as it faced resistance at a multi year high of 739 levels.

Post two-month consolidation price gave a breakout above 739 in early January to hit a high of 793. Post breakout, the price is sustaining above the previous highs and the volumes have also seen decline indicating market participants holding on their long positions in the stock.

In the last few trading sessions, positive price action has been witnessed accompanied by volumes suggesting the stock is likely to see resume its uptrend after short-term consolidation.

Thus, the stock can be bought at current levels and on dips to 775 with a stop loss below 760 for target 840 levels.

Mahindra & Mahindra Ltd: BUY| CMP 764| Stop loss 740| Target 840| Return 10%

Looking at the long-term chart, the stock has seen multiyear consolidation between 750 and 545 levels since August 2014.

Recently, the stock gave breakout from this consolidation with high volumes indicating strong buying participation in the stock.

Since then volumes have been below average as the stock went into a consolidation zone. The stock is currently witnessing consolidation at all-time highs and above its breakout levels suggesting a breakout is likely to sustain.

Thus, the stock can be bought at current levels and on dips to 755 with a stop loss of 740 for a target 900 levels.

IndusInd Bank Ltd: BUY| CMP 1743| Stop loss 1700| Target 1850| Return 6%

The stock is in a long-term uptrend forming a higher top and higher bottom formation. The stock hit a high of 1804 in last September and then corrected down to 1572 levels.

It has seen consolidation at lower levels and this month stock has started to see upward movement. Thus, leading to saucer bottom formation in the stock.

MACD on the weekly chart has given positive crossover with its average indicating correction is over and the stock is resuming its uptrend. Thus, the stock is a buy at current levels and on dips to 1725 with a stop loss of 1700 for target 1850 levels.

MORE WILL UPDATE SOON!!

Buy, Sell, Hold: 6 stocks & 1 sector are on investors’ radar on January 30, 2018

HDFC, Tech Mahindra and KPIT Tech, among others, are being tracked by analysts on Tuesday.

   

HDFC

Brokerage: CLSA | Rating: Buy | Target: Rs 2,200

The global research firm said that an uptick in lending activity will lead growth & RoE. But, a rise in interest rates is a potential risk to spreads. The risk, it said, is due to rise in rates which can be mitigated by hike in corporate lending rates.

Brokerage: Motilal Oswal | Rating: Buy | Target: Rs 2,260

Motilal Oswal said that the company’s AUM growth continues to surprise; spreads stable QoQ. Further, it said that the company reported a steady quarter, with core PBT up 13 percent year on year. It observed that the firm has continued to surprise positively on the opex front. Retail loan growth impressive, despite intense competition & high base.

Tech Mahindra

Brokerage: CLSA | Rating: Sell | Target: Raised to Rs 500

CLSA said that Q3 results were ahead of expectation despite drag in Telecom, BFSI. It has upgraded margin estimates by 30-90 basis points, which is driving FY19/20 EPS upgrades. It also observed that the company’s margin expansion comes at cost of delayed wage hikes, persistent redundancies.

Brokerage: Motilal | Rating: Buy | Target: Rs 700

Motilal Oswal said that the firm put up a good show on profitability; visibility on further improvement remains strong. Further, it felt that opinion of a re-rating has only grown stronger after Q3.

Brokerage: Credit Suisse | Rating: Outperform | Target: Raised to Rs 720

Credit Suisse said that FY19 P/E was reasonable at 15x with estimated 16% EBIT CAGR over FY18-20. Further, enterprise business was solidly poised and should be a beneficiary of cyclical tailwind. It also said that Q3 is demonstrating that turnaround is well on track.

Inox Leisure

Brokerage: CLSA | Rating: Buy | Target: Rs 330

CLSA reported that the screen addition was slower and is still awaiting e-tax exemption clarity. Further, content pipeline for the current quarter appears to be strong. But it has downgraded FY18/19 EPS estimates by 13/6 percent.

Emami

Brokerage: Citi | Rating: Buy | Target: Rs 1,270

Citi said that the company’s Q3 missed expectations on account of subdued topline performance. Meanwhile, wholesale is yet to fully normalise, coupled with pressures in CSD. Rural recovery & efforts on sales & distribution needed for volume rebound, it said.

Orient Cement

Brokerage: Motilal Oswal | Rating: Buy | Target: Rs 179

Motilal Oswal said that the firm’s dismal performance was due to weak realisation. Further, JP Associates’ asset acquisition would help co raise capacity by 38%. It values the company at EV/tonnne of USD 86 on FY20 estimates.

KPIT Tech

Brokerage: Axis Cap

The brokerage house values Birlasoft merger as neutral for the company. It added that deal values Birlasoft at par with KPIT despite strong growth.

Autos

Brokerage: CLSA

CLSA said that sequential trends strong in trucks but a tad weak in PVs/2-wheelers, adding that passenger vehicle (PV) volumes grew at a modest 5% yoy. It also expects PVs/2-wheelers to grow 10%/14% yoy in fy18 & trucks, 3%. For FY19, it is factoring in 10% industry growth. For M&HCVs, it sees 3 percent year on year growth in FY18, but sees upside risk if current volumes sustain.

MORE WILL UPDATE SOON!!

Brokerages cheer HDFC Q3 results; Credit Suisse hikes target price to Rs 2,250

The lender reported net profit Rs 5,670.2 crore for the December quarter, a whopping growth of 233.3 percent year-on-year due to one-time gain after stake sale in life insurance business.

  

Shares of HDFC were under pressure on Tuesday, a day after the lender declared its December quarter results. The stock was lower by over 1 percent after trading about 1 percent higher in the opening tick.

The lender reported net profit Rs 5,670.2 crore for the December quarter, a whopping growth of 233.3 percent year-on-year due to one-time gain after stake sale in life insurance business.

The profit during year-ago quarter stood at Rs 1,701.2 crore, it added.

HDFC earned one-time gain of Rs 3,675.3 crore during the quarter, driven by stake sale in HDFC Standard Life Insurance.

Revenue from operations grew by 6.55 percent to Rs 8,667.15 crore in Q3, compared to Rs 8,133.78 crore in corresponding period.

Asset quality remained stable for the quarter as non-performing loans were at 1.15 percent against 1.14 percent in previous quarter.

Brokerages still maintain their positive outlook on the stock, with Credit Suisse hiking the target price to Rs 2,250.

Brokerage: Nomura |Rating: Buy | Target: Rs 2,000

The brokerage house said that core NII performance was supported by stable spreads. Further, core mortgage profit was supported by improving growth trends. Mortgage growth bottomed out, while asset quality was stable. Having said that, it said that recent rerating has limited the near term upside.

Brokerage: Credit Suisse | Rating: Outperform | Target: Raised to Rs 2,250

Credit Suisse said that the third quarter was a steady one, but net interest margins should improve in Q4. Q3FY18: Consolidated profitability remains strong with RoE at 21%. Meanwhile, it also said that NPAs were flat and management is not seeing any stress in affordable housing segment.

Brokerage: CLSA | Rating: Buy | Target: Rs 2,200

The global research firm said that an uptick in lending activity will lead growth & RoE. But, a rise in interest rates is a potential risk to spreads. The risk, it said, is due to rise in rates which can be mitigated by hike in corporate lending rates.

Brokerage: Motilal Oswal | Rating: Buy | Target: Rs 2,260

Motilal Oswal said that the company’s AUM growth continues to surprise; spreads stable QoQ. Further, it said that the company reported a steady quarter, with core PBT up 13 percent year on year. It observed that the firm has continued to surprise positively on the opex front. Retail loan growth impressive, despite intense competition & high base.

At 12:07 hrs Housing Development Finance Corporation was quoting at Rs 1,933.80, down Rs 19.45, or 1.00 percent, on the BSE. It touched an intraday high of Rs 1,973.00 and an intraday low of Rs 1,930.60.

MORE WILL UPDATE SOON!!

UPL Q3FY18 — Time to grab the weakness?

ULP is a long term play and its underperformance is a good opportunity to accumulate.

  

UPL reported a decent performance in Q3FY18 on the back of a 12 percent volume growth, although it is a slight miss on streets expectations. On a sequential basis, there was an 11 percent growth in revenues along with a 9.8 percent EBITDA expansion. Revenues grew 5.2 percent YoY, but due to pricing pressure there was a 7 percent contraction in operating margins which lead to a 2.6 percent fall in EBITDA. The substantial 40 percent decrease in interest cost helped in improving the net profitability.

Domestic operations need growth in farm incomes

Domestic operations recorded a decent 10 percent growth in revenues during the quarter on the back of the wheat herbicide sales and a delay in sowing in South. Cotton production was up 10 percent YoY which proved beneficial for the company. Slight improvement in MSP (minimum support price) helped in sales pick up during the quarter and the management believes that improving farm incomes would be the key to higher penetration of products, going forward.

High channel inventory impacted LatAm revenues

Margins in LatAm were impacted by very high accumulation of channel inventories during the start of the quarter which capped the price increase. Despite a slight delay in product launches during the quarter due to delay in registrations, new products received a good response and boosted revenues. Untimely rains in Brazil and Argentina delayed the overall planting season by around 15 days which would now tail in Q4.

Strong growth in Europe

Europe reported a strong 4 percent revenue growth on the back of a good sugar beet season and early sales of herbicides. Southern part of EU witnessed a very dry season which damaged crops like grapes and other vegetable that impacted sales. The company has introduced a line of new products in this segment and expects them to pick up in coming quarters.

North America impacted by decline in acreages

North America saw revenues growth of 8 percent YoY despite an impact due to decline in acreages for rice crop, which is a focus crop and accounts for a substantial portion of sales. Soybean and corn drove the revenue growth during the quarter.

China situation

Close down of factories in China owing to environmental concerns have put pressure on sourcing material which has impacted the margins industry wide. UPL too saw the impact, however, limited as the company is now venturing into manufacturing, though raw material sourcing still remains a concern in some cases. Going forward the company plans to expand the manufacturing facilities and benefit from the supply glut.

Move from Innovator to generic

Owing to the current stress on farm economics there has been a trend to move from Innovator products to generics. However the innovator products have also seen price cuts which has left little delta with generics. Moreover in many cases 100 percent replacement is not possible. With increasing product registrations there is immense competition and value from products remains the key.

Outlook

The stock has run up 5 percent in the last 12 months and corrected 2 percent since October ‘17, post which it is now trading at a 2019E PE of 15.7x and EV/EBITDA of 9.6x. With plans to expand in manufacturing which currently seems a strong market owing to closure of Chinese factories, good performance of the herbicide portfolio, a decent expectations from Rabi, good response for the new product launches along with the decent order book lined up, we believe the stock as a long term play and the underperformance is a good opportunity to accumulate.

MORE WILL UPDATE SOON!!

Budget 2018: Govt to plug loopholes; Bonus Stripping could come under taxman lens

Bonus stripping is a term used to structure a transaction of purchase and sale of shares of a listed company, which generates short-term loss which is set off against some other capital gains.

          

As we enter the Budget week speculation about Long Term Capital Gains tax (LTCG) or plugging the loophole around ‘Bonus Stripping’ becomes louder. Tax systems are complex and to keep it simple it leaves behind few opportunities, and if the government can plug this loophole, it could garner close to Rs15000-20000 crore in additional revenues, say experts.

To start with – what is bonus stripping and why has it become the talk of the town?

Bonus stripping is a term used to structure a transaction of purchase and sale of shares of a listed company, which generates short-term loss which is set off against some other capital gains.

This is achieved through acquiring shares of a listed company pre-bonus and selling original shares immediately and bonus shares after one year. Short term loss on original shares is set off against other capital gains and bonus shares are sold after one year to get a long-term capital gains exemption.

Most of the countries apart from India have a system of stock split rather than issue of bonus shares. “There is no other country in the world where bonus shares are valued at zero. It is only in India where we give this flexibility to rich investors to avoid paying capital gains tax.

You plug the loophole, you will get probably between Rs 15,000 crore and Rs 30,000 crore

It is a normal belief that there doesn’t exist ‘FREE Lunches’ and finding arbitrage opportunities are difficult but there exists one known as ‘Bonus Stripping’.

Tax systems are complex and to keep it simple it leaves behind few opportunities to save on it. As there is a tax haven on Long-Term Capital Gains, investors holding stocks, where bonuses are declared, have an opportunity to book a loss and set it off against other short-term gains.

It’s an ‘Open Secret’ and be assured the regulator knows it as well. It’s just the priority or lack of systems or lack of urgency which has kept it around for a long time. For a fair tax treatment, bonus stripping should be curbed and a probability exists of it popping up as an announcement in future.

Agarwal further added that LTCG would be a larger revenue source of taxes, however; regulating bonus stripping could be a fair approach immediately. With the challenge of lower tax avenues and higher spending, the odd remains in favor for an announcement of something to control this in the upcoming budget.

How does bonus stripping work?

Ashok Shah, Partner, NA Shah Associates explains bonus stripping with the help of an example:

• Suppose you haves short-term capital gains of Rs1,00,000 on sale of listed company shares

• On this, you would be required to pay capital gains of Rs15,000 (15%)

• Now you locate a company X, listed on the stock exchange, which is declaring bonus in the ratio of 1 bonus share for each share held. The market value of the equity shares of X is Rs. 1,000.

• After record date for bonus shares, the price of a share of X would drop to Rs. 500.

• If you do not desire to pay any capital gains tax, you buy 2,000 shares of X for Rs.2,00, 000 before the record date. On this, you will get 2,000 bonus shares after the record date.

• After the ex-bonus date, you sell 2,000 original shares of X for Rs. 500, realizing Rs. 1,00,000. As per Income tax rules, you get short-term loss of Rs1,00,000.

• You hold the 2,000 Bonus shares received by you for a period of one year and sell the shares for say Rs. 500 per share. For the purpose of computation of capital gains, the cost is taken at Rs. Nil but since long-term capital gains are exempt, you do not pay any tax.

• On an overall basis, against the cost of Rs.2,00,000, you have realized Rs. 2,00,000 making no gain or loss. But for tax purpose, you got short-term loss of Rs. 1,00,000 which you used to set off against short-term capital gains of Rs. 1,00,000 and you saved tax of Rs. 15,000.

Is Bonus stripping foolproof?

If you can prove that acquisition and disposal of the shares was not done with the main objective of tax avoidance, then as per current rules, you can set off the loss on bonus stripping.

If the main motive is tax avoidance or the transaction lacks commercial substance, Income tax department can invoke General Anti Avoidance Rules (if the quantum of tax advantage exceeds Rs. 3 crores).

Supreme Court in the case of Wallfort Stock and Shares Brokers in the context of dividend stripping had held that there was nothing illegal about dividend stripping. Thus, following the same analogy, even bonus stripping should be safe unless provisions of GAAR apply.

However, he cautions investors on resorting to Bonus stripping for claiming tax exemptions. “If you like the shares for long-term investment, then there is no harm in resorting to bonus stripping as it will amount to legitimate tax planning. But structuring the transaction solely as a tax avoidance tool is a risky affair.

MORE WILL UPDATE SOON!!