These companies aren’t just looking to raise easy money—they are in genuine need of funds to expand their businesses or to meet regulatory requirements.
Pricing is critical. These businesses are worth owning, but eventually a case for investing in them will come down to pricing. Companies are aware that in this fragile market, anything other than conservatively priced issues will backfire, which means potential listing gains for you. This could also draw small investors back to the capital market, including the secondary market, where valuations today are extremely attractive.
TAXATION
Get Your Tax Returns Paperwork Right
Paying taxes is only half the job done. You also need to get the paperwork right. To ensure that your returns aren’t "defective":
- Furnish details on the computation of your income.
- File a statement showing the computation of tax payable.
- File proof of tax deducted at source, as also advance tax and self-assessment tax payments.
- Submit balance sheets in case regular books of accounts are maintained and a statement of accounts if not.
- File audit reports where the accounts are subject to a tax audit or any other audit.
When are returns invalid? If these requirements are not met, returns of income will be regarded as defective. You’ll then be issued a notice pointing out the defect, which you have to rectify within 15 days of receiving the intimation. Failure to do so renders your returns "invalid". In such a case you’ll have to file new returns and maybe even pay a penalty for delayed filing of returns or for deemed concealment of income due to non-filing of returns.
It pays to prepare your returns early.
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