Amendment Of Income Tax Act - Consumer Sector Narrative Vs Reality: ICICI Securities
Women walk by bottles of Hindustan Unilever Ltd. Dove and Lux deodorant displayed at a store in Mumbai. (Photographer: Kuni Takahashi/Bloomberg)

Amendment Of Income Tax Act - Consumer Sector Narrative Vs Reality: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Narrative - Finance Bill amendment of Income Tax Act to disallow depreciation on goodwill will have a material impact on companies’ fair value.

Reality, our view: There will be greater clarity once the fine print of this amendment is released. However, our initial reading is that, if enacted, this could impact potential tax savings for some consumer companies.

That said, we assume that this is a one-time impact which will not have any (material) long-term implications on the valuations of impacted companies.

Click on the attachment to read the full report:

ICICI Securities Consumer Sector Narrative Vs Reality.pdf

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