BFSI Budget Expectations 2019


Kailash Baheti, CFO, Magma FincorpKailash Baheti, Magma Fincorp

The Finance Minister had promised reduction of corporate tax rate to 25% over a 4 year period in the budget 2015, industry expects him to deliver a Corporate Tax rate to 25% this year for cos. On GST front, if we scan through most of the decisions of the Authority for Advance Ruling for GST, we would find that the decisions are pro revenue. There are instances, where the AAR has taken diagonally opposite view to the FAQs published by the Government for GST implementation. The AAR needs to shed its ultra-cautious approach and take a pragmatic and correct stand on each matter where the Authority needs to deliver a decision.

Gaurav Gupta, Co-founder and CEO, MyLoanCare.inGaurav Gupta, MyLoanCare

One phenomenon that is undebatable today is NBFCs contribution in improving access to finance to large sections of deserving, yet under-served sectors be it SME finance, housing, microloans or education loans. NBFCs bring with them a higher risk appetite and skill sets to gauge customer behavior and meet customer requirements in niche segments.

Real estate sector, which has been hit by large unsold inventory and stalled incomplete projects, had been significantly dependent on raising funds from NBFCs to keep their operations going. However, post the IL&FS crisis, this line of financing has dried up and this is further impacting an already struggling sector. Market regulator and industry players have been concerned about the NBFCs’ exposure to real estate developers and other sensitive sectors. The current crisis that is facing the real estate sector can have a detrimental impact not just on infrastructure development in the country but can result in far-reaching crisis for the innumerable SMEs who work in the sector as suppliers and vendors to developers. While RBI has shown commitment towards addressing capital requirements of the NBFCs in other segments, it remains to be seen if they will extend a helping hand to the real estate sector by enhancing the financing limit of NBFC’s to developers or by providing refinance window for non-consumer loans by NBFCs.

Anirudh Damani, Managing Partner – Artha Venture FundAnirudh Damani, Artha Venture Fund

I would like to see, A reduction in the individual income tax rate NIL upto 5L and capped 25% for the top most bracket to encourage consumption

Allow LTCG gains from Real Estate to be offset if proceeds are invested into Venture Capital funds to facilitate investments for startup funds

LTCG for angel/VC investments (over 2 years) brought down to zero.