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Stock name: 3M India Ltd.

Pattern: Head and shoulders pattern and retest

Time frame: Daily

Observation:

Since May 2022, the stock has experienced a notable uptrend. Recently, it stabilized and exhibited a head and shoulder pattern on its daily chart. On April 15, 2024, the stock broke out from this pattern. Following the breakout, it underwent a strong retest of the breakout level and is presently trading above the neckline. Despite this, the RSI level remains relatively low. According to technical analysis, a successful completion of the retest and a subsequent downward momentum may lead to further decline.

You may add this to your watch list to understand further price action.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

Stock name: Bharat Forge Ltd.

Pattern: Double bottom pattern

Time frame: Daily

Observation:

In February 2024, the stock experienced a significant decline. Following this, it stabilized and depicted a double bottom pattern on its daily chart. On April 19, 2024, the stock broke out from this pattern. Subsequently, it has been moving upwards accompanied by favourable RSI levels. Technical analysis suggests that if the stock maintains its current momentum, it may extend its upward trajectory.

You may add this to your watch list to understand further price action.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

News for the day:

• Pavna Industries partners with OLA Electric to supply auto components, marking its entry into the domestic EV sector, specifically targeting the two-wheeler segment. The agreement involves supplying ignition switches and latches from Pavna's Aligarh unit to OLA Electric's plants across India. Pavna Group's shares rose by 4.99% to Rs 561.40 on the BSE following the announcement.
  
  
• Ravi Jaipuria of RJ Corp has finalized a succession plan: his son will lead the food & beverages business, encompassing Varun Beverages and Devyani International, while his daughter will oversee healthcare and education ventures. Both children, Varun and Devyani, are set to assume strategic leadership roles. The Jaipurias hold substantial stakes in the listed companies, with Varun focusing on VBL and DIL, and Devyani managing healthcare and education sectors. Ravi Jaipuria will remain chairman, overseeing overall growth and policies, while professionals handle daily operations.
  
  
• Zydus Lifesciences debuts a generic drug for overactive bladder in the US, launching Mirabegron extended-release tablets (USP 25 mg) with plans for the 50 mg variant. The medication, aimed at alleviating symptoms like urge urinary incontinence and urgency, will be produced at Zydus' facility in Ahmedabad SEZ, India. CEO Punit Patel highlights the launch's significance for the company's growth strategy in the US market.

Stock name: Bayer Cropscience Ltd.

Pattern: Double bottom pattern and retest

Time frame: Weekly

Observation:

Since September 2020, the stock has experienced a decline, followed by stabilization, marking a double bottom pattern on its weekly chart. December 2023 witnessed a breakout from this pattern. However, post-breakout, the stock underwent a rigorous retest, slipping below the pattern's neckline. Presently, the stock has rebounded from the retest, accompanied by a favourable RSI level. As per technical analysis, if the stock continues with the current momentum, it may see continuation of the upward trajectory.

You may add this to your watch list to understand further price action.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

Stock name: Muthoot Finance Ltd.

Pattern: Cup and handle pattern

Time frame: Weekly

Observation:

The stock has shown a consistent upward trend. During the period from January 2022 to April 2024 the stock has formed a cup and handle pattern on the weekly chart. In the first week of April 2024, the stock broke out from this pattern, backed by above-average trading volume and a bullish MACD indicator. According to technical analysis, the stock may sustain its upward momentum if it maintains its current trajectory.

You may add this to your watch list to understand further price action.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

News for the day:

• Hero MotoCorp and CG Motors have inaugurated an assembly unit in Nepal, capable of producing 75,000 units annually, including popular models like Xpulse 200 4V and Super Splendor. This venture aims to attract investments and create job opportunities in Nepal, while Hero MotoCorp plans to expand its sales and service network in the country.
  
  
• Tesla cuts prices in China amid stiff competition, while Elon Musk delays his India visit. Model 3 now starts at 231,900 yuan, down from 245,900 yuan, and Model Y at 249,900 yuan, reduced from 263,900 yuan. The move follows incentives introduced to counter rivals like BYD. Despite India's favourable EV policies, Tesla faces challenges globally, with falling stock prices and Musk's postponed plans.
  
  
• HPCL plans to establish an international oil trading desk as part of its Visakh Refinery Modernisation Project, aiming to enhance capacity and distillate yields. The desk will enable real-time procurement of crude oil from global markets, potentially reducing import costs. HPCL is finalizing the desk's location as it progresses with the modernization project, set to increase petrol and diesel production with BS-VI specifications.

Generally, when you talk about taxes, you tend to procrastinate, because that is tedious job to do, but there is due date for filing your taxes which needs to be adhered to else you’ll have to face the consequences for the same.

Today, let us deep dive to understand what are the different types of ITR and what are the due dates for filing them.

Lets first understand what all types of Income tax returns are available?

1. Regular return

A regular Income Tax Return (ITR) is a document which is used to report details about your income and taxes to the Income Tax Department. The amount of tax a taxpayer owes is determined based on their income. If the return indicates that excess tax has been paid within a given year, the individual is eligible to receive a refund from the Income Tax Department.

2. Revised Return

If you find any error or discrepancy in your original return, you can rectify the same and file a revised return u/s 139(5). Such errors can include

1. Any mistake in personal information like address, residential status etc
2. Wrong ITR Form
3. Missed reporting income sources
4. Errors in carrying forward losses
5. Mistakes in deductions claimed and so on.

Once you file a revised return, it will substitute your original return, and don’t forget that you also need to verify your revised return as well within 30 days of filing it.

3. Belated Return

This is for all those who snoozed through the due date of filing ITR. You can file a belated return till 31st December of the relevant Assessment Year. So, if you haven’t filed your ITR for AY 2022-23, you can file a belated return by 31st December 2022. But wait! Remember that filing a belated return comes with consequences. What are they?

1. Interest u/s 234A

Simple Interest @ 1% of tax liability per month or part thereof will be levied if you file a belated return. The calculation of interest will be from the date after the due date until the actual date of filing. For example, the due date for filing ITR for AY 2022-23 was 31st July 2022. Now, if you file a belated return on 2nd October 2022, you will have to pay interest for 3 months. So, the earlier you file it, the lesser penalty you will have to pay.

1. Late Filing Fees u/s 234F

If you file a belated return, you may have to end up paying a late filing fee of up to INR 5,000. However, it will only be applicable if your income is above the basic exemption limit.

1. Inability to carry forward losses

You can set off your losses against the current year’s incomes while filing a belated return. However, you will not carry forward your losses incurred except for house property loss.

1. Inability to claim certain deductions/exemptions

Filing a belated return also prevents you from claiming deductions/exemptions u/s 10A, 10B, 80-IA, 80-IB, 80-IC, 80-ID and 80-IE.

4. Updated Return

ITR-U or Updated Income Tax Return is the form that allows you to rectify errors or omissions and update your previous ITR. It can be filed within two years from the end of the relevant assessment year. The government introduced the concept of updated returns in the Union Budget 2022.

An Updated Return can be filed in the following cases:

1. Did not file the return. Missed return filing deadline and the belated return deadline
2. Income is not declared correctly
3. Chose wrong head of income
4. Paid tax at the wrong rate
5. To reduce the carried forward loss
6. To reduce the unabsorbed depreciation
7. To reduce the tax credit u/s 115JB/115JC
8. A taxpayer can file only one updated return for each assessment year (AY).

Now after understanding the types of returns, let us also take a look at the due dates for filing these returns.

Income tax filing due dates for FY 2023-24 (AY 2024-25)

Stock name: MphasiS Ltd.

Pattern: Double top pattern and retest

Time frame: Daily

Observation:

Since March 2023, the stock has steadily risen, stabilizing between December 2023 and March 2024, displaying a double top pattern on its daily chart. March 2023 saw a breakout from this pattern, accompanied by above-average trading volume. Following the breakout, the stock retested its breakout level once before resuming a downward trajectory. Presently, the stock's RSI levels are notably low. As per technical analysis, if current momentum persists the stock may move further downwards.

You may add this to your watch list to understand further price action.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

Stock name: Indian Railway Catering And Tourism Corporation Ltd.

Pattern: Cup and handle pattern and retest

Time frame: Weekly

Observation:

From October 2021 to April 2024, the stock formed a cup and handle pattern on its weekly chart, with a breakout occurring in the second week of April 2024. The breakout was accompanied by average trading volume and a bullish MACD indicator. Subsequently, the stock has faced heavy retest of the breakout and it is presently trading below the breakout level. The RSI has cooled off due to the retest, reaching a favourable level. According to technical analysis, a rebound from the retest might prompt an upward movement in the stock.

You may add this to your watch list to understand further price action.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

News for the day:

• Tata Motors plans to use a new $1 billion plant in Tamil Nadu to manufacture Jaguar Land Rover (JLR) luxury cars, sources disclosed. While the company previously announced the investment without specifying models, this move indicates an expansion in production capacity. Official confirmation on which JLR models will be produced is pending, with Tata Motors refraining from commenting on the speculation.
  
  
• Nestle may encounter Indian regulatory action due to sugar levels in infant milk; brand responds with explanations. A probe found regional disparities in sugar content, prompting Nestle India to defend its practices, emphasizing compliance and ongoing efforts to reduce added sugars. WHO and health experts raise concerns about public health implications, while Nestle pledges to further reduce sugar levels without compromising safety or quality.
  
  
• Hindustan Zinc, part of Vedanta Group, rises as the world's third-largest silver producer, with Sindesar Khurd Mine now ranking second globally. Its 5% production increase is attributed to enhanced ore output and grades, reinforcing its pivotal role in the global silver market amid the energy transition. As the world's second-largest integrated zinc producer, Hindustan Zinc commands 75% of India's zinc market, with headquarters in Udaipur and operations across Rajasthan.

Stock name: Raymond Ltd.

Pattern: Double bottom pattern and retest

Time frame: Daily

Observation:

From September 2023, the stock experienced a downward trend before stabilizing, forming a double bottom pattern on its daily chart. A breakout from this pattern occurred on April 3, 2024, backed by above-average trading volume. Following the breakout, there was a significant retest of the breakout level, leading to a favourable cooling off of the RSI. According to technical analysis, a successful rebound from this retest may signal further upward movement for the stock.

You may add this to your watch list to understand further price action.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

Stock name: Bosch Ltd.

Pattern: Rounding bottom pattern

Time frame: Monthly

Observation:

Since 2015, the stock has declined until COVID-19, then found stability. Subsequently, it rebounded, forming a rounding bottom pattern on its monthly chart spanning from February 2015 to February 2024. February 2024 saw a breakout from this pattern, accompanied by robust trading volume. Following the breakout, the stock trended upward. According to technical analysis, sustaining this breakout momentum may propel the stock higher.

You may add this to your watch list to understand further price action.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

News for the day:

• Ramkrishna Forgings makes its foray into the US EV market by supplying powertrain components to the largest producer, leading to a 3% surge in shares. This move reflects their dedication to innovation and sustainable mobility, complementing their recent orders for Vande Bharat train sets.
  
  
• Reliance Consumer Products (RCPL), a subsidiary of Reliance Industries, achieved remarkable success in its debut year, raking in sales of ₹3,000 crore in FY24. Notably, beverage brand Campa Cola contributed ₹400 crore to this feat. RCPL aims to sustain its sales growth by focusing on staples and beverages, with plans to raise ₹500-₹700 crore this fiscal to expand Campa Cola's bottling capacity. This milestone surpasses the sales of established players like Emami, underscoring RCPL's rapid ascent in the FMCG sector.
  
  
• Vodafone Idea's FPO opened today, driving a 4% surge in its stock to Rs 13.48, with notable interest from investors like GQG Partners. Vi raised Rs 5,400 crore from 74 anchor investors, including UBS and Morgan Stanley Investment Management. Despite investor enthusiasm, analysts warn of the company's high debt load for retail investors.

Most of you are likely familiar with Elon Musk, a prominent figure in business and investment. With his various ventures, he ranks among the top 3 wealthiest individuals globally. Musk oversees companies such as Tesla, SpaceX, and Neuralink. As the CEO of Tesla, he leads the groundbreaking electric vehicle (EV) manufacturer. Tesla currently holds a leading position worldwide in both market value and second in the sales volume.

Starlink, a satellite-based internet service developed by SpaceX, has made significant progress, establishing a subsidiary in India in 2021 and undergoing the process of regulatory approval to launch its services. It is now on the brink of receiving official approval, with reports suggesting Elon Musk's planned visit to India in April 2024. Musk is scheduled to arrive on April 21 and is expected to meet with Prime Minister Modi on April 22. During this time, significant announcements regarding Starlink's operations and Tesla's entry into the Indian market are anticipated.

According to a government official cited by MoneyControl, the announcements are likely to be of a general nature regarding Tesla's entry into India, rather than specifying particular locations. This is because Tesla typically requires board approval for site-specific announcements, which may occur at a later stage.

Elon Musk has been trying to enter the Indian market for a long time. However high import taxes have eluded him the proper opportunity. In March, Centre announced a revised EV policy slashing import taxes to 15 per cent from 100 per cent on some models if a manufacturer invests at least $500 million and sets up a factory in the country too. With this favourable policy Musk may be more inclined to enter the Indian Market. Recently, Tesla have joined hands with Tata Electronics for the procurement of semiconductor chips for the US-based company’s operations as it eyes local sourcing of components, according to a report by the Economic Times. The firm is in talks with various state governments in India for a manufacturing plant ahead of billionaire Elon Musk’s meeting with Prime Minister Narendra Modi.

The arrival of Tesla could prove advantageous for both the company and India. While Tesla has faced challenges in its endeavours in China, where it was initially attracted by incentives, the rise of strong domestic competitors has posed obstacles to its dominance in the market. As a result, the company is now shifting its focus to India's rapidly expanding electric vehicle sector, enticed by the promising growth opportunities it offers and the Indian government's unwavering commitment to sustainability.

Similarly, India has been striving to bolster its manufacturing ecosystem, lagging behind smaller nations like Bangladesh and Vietnam in market capture. With manufacturing accounting for approximately 13 percent of GDP in 2022, far below China's 28 percent, the government aims to shift focus from agriculture to manufacturing. Nearly 30 percent of India's manufacturing output is attributed to the automotive sector, with hopes that Tesla will revolutionize electric vehicles as Maruti did with internal combustion engines. Additionally, concerns persist over AI's potential threat to jobs, particularly in the BPO sector of India. This necessitates urgent action to cultivate alternative job ecosystems and drive growth. Entry of global companies like Tesla can be a possible alternative solution.

Regarding the impact on domestic EV manufacturers, an expert suggests that the current slowdown in the EV market requires a push, which Tesla could provide. Tesla's entry into India is expected to generate significant attention, giving a boost to the Indian electric car market. The arrival of more players will enhance confidence among both companies and buyers. Tesla is likely to introduce innovations not yet seen in the market, with its entry-level model priced between Rs 25 lakh to Rs 30 lakh. While it may compete with high-end models from Tata Motors and Mahindra, overall, it is expected to benefit the Indian market. Despite the growth in the EV sector, it has not yet reached the levels targeted by the government for 2030. The EV drive is mainly dominated by the two and three-wheelers and e-rickshaws. Challenges such as charging infrastructure and new models have hindered progress in the four-wheeler segment. However, Tesla's entry could enhance choices and stimulate growth.

Given these developments, it is worthwhile to observe how Musk's visit to India unfolds, the nature of the announcements made, and the resulting impact on India's economy and its various stakeholders.

Stock name: Sonata Software Ltd.

Pattern: Head and shoulders pattern

Time frame: Daily

Observation:

Following the COVID-19 pandemic, the stock displayed a notable uptrend. The stock consolidated and formed a head and shoulders pattern on its daily chart from December 2023 to April 2024. On April 15, 2024, the stock broke out of this pattern, backed by a bearish MACD indicator. The RSI of the stock are also currently at a low level indicating a bearish sentiment. Technical analysis suggests that if this downward trajectory continues, the stock may further decline.

You may add this to your watch list to understand further price action.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

Stock name: Nippon Life India Asset Management Ltd.

Pattern: Cup and handle pattern

Time frame: Weekly

Observation:

Between October 2021 and April 2024, the stock underwent a cup and handle formation on its weekly chart, culminating in a breakout at the start of April 2024. The breakout was supported by significant trading volume. Presently, the stock exhibits bullish signals on the MACD indicator. According to technical analysis, sustaining this breakout momentum may move the stock further in the upward direction.

You may add this to your watch list to understand further price action.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

News for the day:

• Elon Musk's Starlink inches closer to approval in India after nearly three-and-a-half years of review, pending final clearance from the Home Ministry. The Telecom Ministry's nod precedes Musk's visit, with strict mandates ensuring data sovereignty and customer privacy. Musk's visit also hints at potential investments in India's electric vehicle sector, with preparations underway for Tesla's entry.
  
  
• Fairfax's Odyssey Reinsurance injects Rs 500 crore debt into IIFL Finance for gold loans, offering secured bonds at 9.5% interest. The move comes amid RBI's ban on IIFL Finance for gold loans due to lending irregularities. However, there are no responses or official statements from IIFL Finance and Fairfax as they have remained unavailable.
  
  
• Vedanta secures 11-year Rs 3,900 crore loan from PFC to expand its power business, aiming for a 4.8 GW capacity by FY27. The loan will primarily support acquisitions like Meenakshi Energy and Athena Power, reflecting Vedanta's focus on energy growth amidst ongoing demerger plans. Major investors like BlackRock and ADIA show confidence in Vedanta's strategy, which includes expanding renewable energy projects and mining operations.

Stock name: Blue Dart Express Ltd.

Pattern: Head and shoulders pattern and retest

Time frame: Weekly

Observation:

Since August 2020, the stock experienced a remarkable upward trend, but it has consolidated and formed a head and shoulders pattern on its weekly chart. March 2024 witnessed a breakout from this pattern, followed swiftly by a substantial retest of the breakout closing above the neckline. Presently, the stock has concluded its retest and is once again trending downward. Additionally, the stock's RSI levels indicate significant weakness but the stock is still above the breakout line. According to technical analysis, if this downward momentum persists, further declines may be expected.

You may add this to your watch list to understand further price action.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

Stock name: Kajaria Ceramics Ltd.

Pattern: Double top pattern and retest

Time frame: Weekly

Observation:

Since May 2020, the stock has been on an upward trajectory. Between July 2023 and March 2024, it underwent consolidation, forming a double top pattern on its weekly chart. March 2024 saw a breakout from this pattern, followed by an immediate retest leading to stock closing above the breakout line. Currently, the stock has completed its retest and resumed its downward trend. Moreover, its RSI levels suggest notable weakness. As per technical analysis, if the stock continues with the current momentum it may see further decline.

You may add this to your watch list to understand further price action.

Disclaimer: This analysis is purely for educational purpose and does not contain any recommendation. Please consult your financial advisor before taking any financial decision.

News for the day:

• Hindustan Zinc Ltd (HZL) partners with VEXL Environ Projects to establish a pilot project converting waste into resources. The Memorandum of Understanding (MoU) aims for sustainable solutions by utilizing waste products like jarosite and jarofix from zinc extraction. CEO Arun Misra emphasizes the partnership's potential in unlocking value from waste streams for a greener future.
  
  
• The Adani Group, via Ambuja Cements and ACC Ltd, aims for a 20% share in India's cement market by FY28, leveraging internal funds to remain debt-free. They plan aggressive capacity expansion to reach 140 million tonnes per annum by FY2028. Ambuja emphasizes debt-free status and growth supported by group synergies amidst India's growing cement demand.
  
  
• Amid Iran-Israel tensions, Sensex and Nifty slid on April 15, 2024, with Sensex dropping 610.17 points to 73,634.73 and Nifty by 181.60 points to 22,337.80 (at the time of writing this blog). Experts and analysists have warned of volatility due to the conflict and Iran's cargo ship seizure, impacting global equity markets and crude oil prices. They have highlighted geopolitical tensions affecting bond yields and leading to outflows from emerging markets like India.

Most of us strive for better living standards, better facilities etc for which we work tirelessly and earn money. This can be through various sources like salary, rent, business, interest, dividend etc. However, in order to determine the taxability of the same, the income tax department has categorized these into five distinct heads. So, today lets dive into understanding these heads of income:

1. Income from Salary

As the name suggests, income from salary includes any wages, salary, compensation, or allowances received by an individual as a part of their employment. Moreover, this head also includes retirement benefits like gratuity, commission, bonus, and pension.

For the income to be qualified under this head, there must be an employer-employee relationship between the employer and employee. If a taxpayer receives arrears of salary or pension after termination or retirement from employment, those amounts will also be included under this head.

Nowadays, ESOP’s (Employee stock option plan) are commonly issued by companies (In an ESOP plan, the employee gets the company’s stock at a low cost. These are perks provided in order to retain employees). The taxation on ESOP normally happens twice. The first time is when they are issued/ exercised by the employees and the second time is when they are sold in the open market. Normally ESOPs are issued to the employees at a lesser price than the market price of the shares of the concerned company. The difference between the market price and the exercise price is considered to be a perquisite, which is taxed as salary in the hands of the recipient,

Additionally, under this head, certain exemptions are also provided such as standard deduction, house rent allowance (HRA), conveyance allowance, etc.

2. Income from House Property

Under this category, income generated from rentals earned from properties or land which they have rented is assessed. The taxpayers have the option to claim the deduction of the interest amounts paid on a home loan for self-occupied property as well as let out property under the head income from house property.

Here, some people may wonder that what if I have a commercial premise and I have rented it out?

To answer their queries, income generated from renting out a shop falls under this category itself.

3. Income from Capital Gains

Under this head, income generated on selling of assets is assessed, these assets could be capital asset such as land, buildings, shares, jewellery, bonds, mutual funds, and others.

Moreover, this category comprises two subcategories: short-term capital gains and long-term capital gains. The duration of ownership determines whether the gains are classified as short-term or long-term and, on this basis, there are various exemptions available.

The ESOPs which we discussed in the Salary head, when sold by the employees are taxed under this head.

4. Income from Business and Profession

The income from business and profession includes profits or losses generated from any business or profession. Business comprises trade, commerce, manufacturing, and other similar activities. On the other hand, the term profession refers to specialized knowledge gained after undergoing formal education and examination in a specific field.

Under this head, there are three different sub-categories for business income:

• Speculative Business Income (Intraday is taxed as Speculative Business Income)
• Non-Speculative Business Income (F&O is taxed as Speculative Business Income)
• Specified Business Income (Some specified businesses like cold chain facility, warehousing facility etc.)

If a person has income under this head, the income tax provides him with an option to report their incomes under the presumptive scheme where the taxpayers are allowed to declare their profits at reduced rates and subsequently pay taxes based on this declaration.

5. Income from Other Sources

Any income that does not fall under any of the above-mentioned categories will be reported under the head income from other sources. A few examples of income from other sources are interest from savings banks or deposits, dividends from shares or units of mutual funds, winnings from lotteries or games, gifts received, etc.      

To understand more about such interesting concepts along with further interesting examples, check out my course on Mastering Money Management.

Until next time !!!