Union Finance Minister Arun Jaitley presented the annual budget 2018 on February 1 and made several major announcements with regards to the Banking, Financial Services and Insurance (BFSI) sector. Explaining the budget by highlighting the pivotal allocations, Punit Jain, Chief Executive Officer (CEO), Nelito, shares some insights in conversation with Elets News Network (ENN).
Good Things That Happened –
- The Good thing for Corporates is the reduction of corporate tax to 25 per cent from 30 per cent. This would result in increased savings and in turn help in more investments for growth
- Budget has given big thrust for Micro, Small & Medium Enterprise (MSME) sector. Improved credit availability for MSMEs via the Mudra and the Bill Discounting Scheme and higher allocation to the funds of funds is admirable
- Increased encouragement would help NBFC entrepreneurs to expand their businesses and also pave way for more innovative NBFCs to come up
- The Growth of Lending MSME sector would also turn good for our Lending Software Business
- “Modicare”, the National Health Protection Scheme, announced in the budget is praiseworthy. This needs to be administered well so as to control any massive corruption
Not so Good Things That Happened –
- What came as disappointment for the salaried class was that the government did not provide any relief in the income tax rates along with the imposition of long-term capital gains (LTCG) tax on equities
- The whole concept of first take tax as TDS and then file for refunds is a major problem
- Lastly, MSMEs & Start-ups GST filing should be made easier. Start-ups have to submit GST every month which was expected to be made 3 months.