FinTech companies demand further liberalization of tax system in 2022 budget

The fintech industry claims that it has great potential to promote financial inclusion and create significant employment opportunities, and Finance Minister Nirmala will further liberalize the tax system of financial sector start-ups with the next budget. I urged Sitaraman. The Minister of Finance will present Union Budget 2022-23 in Parliament on February 1st. In response to the expectations of the fintech industry from the budget, all startups, including fintech companies, retain their talent.

However, employees of such fintech companies exercising the ESOP (Employee Ownership Plan Plan) option will not only arrange funds to purchase the same, but the allotted shares will be considered part of the package. Therefore, you also have to pay about 35% tax. He said.

“By collecting taxes on the sale of such shares rather than collecting the employee’s expected income, it will help solve the employee’s cash flow problem and help FinTech continue to attract and retain talent. , Which will help the industry grow as a whole, “Jalan suggested. ..

Stashfin co-founder Shruti Aggarwal said the government’s digital push has opened the door to financial inclusion and the fintech revolution. “I want the budget to focus on driving the country’s fintech ecosystem. The fintech industry has the capacity to help push the Indian economy to a place of deserved value. “.

Includes more segments to promote financial inclusion of citizens with a limited credit footprint, just as priority sector lending supported priority sectors in the economy that may require credit and financial support from NBFC. If so, Aggarwal said it would be beneficial to FinTech start-ups. She further stated that banks are now allowed to lend to NBFC up to an overall limit of 5 percent of the total preferred loans of individual banks.

“If this is raised to 7%, it will further boost the economy,” said Rakesh Kaul, CEO of Clix Capital. Faster economic recovery.

However, low-rated NBFCs face major liquidity challenges, as bank funding is primarily directed at the highest rated or government-sponsored NBFCs. “Therefore, the Finance Minister could announce a bold move to encourage banks to resume funding for NBFCs, especially small and medium-sized players,” Kaul added. Both share risks.

This will ensure that banks will also receive the benefits of such loan priority sectors, Mr. Cowl said. Nitya Sharma, co-founder and CEO of Simpl, has already demonstrated that the fintech industry, especially the digital payments sector, is a stable growth vehicle during a pandemic and is fully promoting the center. I thought I was supporting it. Digital economy.

“To ensure that the benefits of financial technology and digital payments permeate rural Indian customers, the government can focus on expanding its digital infrastructure: remote payment touchpoints and 5G internet connectivity. This will facilitate rapid transactions and enhance real-time payment systems. “Digital payments with cutting-edge technologies such as machine learning and data analysis will build cashless digital payments.” He said he played an important role in the above. -The first economy.

“We welcome government support for startup technology skills building initiatives that will greatly help build a viable fintech ecosystem,” he said. There are more than 60,000 startups in India with 42 unicorns. The government has decided to celebrate January 16th. As a national startup day, as this startup culture reaches the faraway parts of the country.

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FinTech companies demand further liberalization of tax system in 2022 budget

Source link FinTech companies demand further liberalization of tax system in 2022 budget


Donovan Larsen

Donovan is a columnist and associate editor at the Dark News. He has written on everything from the politics to diversity issues in the workplace.

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