HomeMedia CenterP2P lenders give thumbs up to budget 2019

P2P lenders give thumbs up to budget 2019

A slew of tax sops in budget 2019 would have a positive impact on the P2P industry, believe leaders of the emerging industry.

“This will have a positive impact on credit supply, put downward pressure on the lending rates and attract more creditworthy borrowers to P2P lending. We want the government to ease taxation on income earned by lenders and are hopeful that it will be covered in the next budget,” says Rajat Gandhi, Founder & CEO, Faircent.com.

 

The finance minister has proposed Income Tax rebate to individuals to individuals with a taxable income of up to Rs 5 lakh. In other words, if your taxable income is below Rs 5 lakh, you need not pay tax at all. If the individual invests Rs 1.5 Lakh per annum under Section 8OC, the effective tax-free income will go up to Rs 6.5 lakh. FM has also proposed an increase in tax rebate from Rs 2500 to Rs 12500 for those earning up to Rs 5 lakh per year.

The finance minister has also proposed to hike the standard deduction to Rs 50,000 from the current Rs 40,000. Also, there will be no TDS on house rent of up to Rs 2.4 lakhs and interest income from bank, post office deposits will be exempt from tax of up to Rs 40,000 (earlier Rs 10,000), a relief particularly for senior citizens. Finance Minister Piyush Goyal also announced farm support schemes that will put more money in the hands of farmers thus giving an impetus to rural consumption.

Bangalore-based P2P platform Finzy believes the budget can provide major push to consumption, by leaving extra cash flow in hands of poor, lower middle class and salaried class.

“Consumption in turn would kick start capital expenditure and that in turn would lead to employment of our burgeoning population. Further leading to investment and consumption and setting in motion the much needed multiplier effect,” says Amit More, Founder and CEO, Finzy.

The P2P industry was hoping for a relaxation in angel tax, but the budget was mum on it. “We are disappointed at the no mention of much needed clarity on aspects of angel tax on start-up investments. Possibly, it will be addressed in DIPP roundtable scheduled next week on this subject,” adds More.

Some P2P players couldn’t stop lauding the sops offered to middle-class salaried people, farmers, and workers in the unorganised sector.

“These three comprise ly 80 per cent of the population. Though the slipping fiscal deficit target could be a bit concern point, overall the budget is good for all sections of the people. The salaried people are the best beneficiary with 3 facet benefits across tax slab, tax benefit in purchase of second house and increase in untaxed income earned through bank/post deposits,” Bhavin Patel, Co-Founder & CEO, LenDenClub.

RupeeCircle, which received the P2P licence early this year, said the Government’s proposal to digitize 1 lakh villages over the next 5 years will benefit the fintech companies to further drive financial inclusion.

FM’s mention of a national Artificial Intelligence (AI) portal also sparked interest among the P2P players. “We look forward to the National Artificial Intelligence Portal because now the innovative fintech segment can tap into new and emerging technologies and use AI to the betterment of society,” added Kumar.

Budget 2019 also laid stress on India’s status as a second biggest start-up hub in the world. Though much was left unsaid, according to some P2P players.

“There is nothing in Budget for the fintech sector. The only saving grace is the exemption limit to individuals up to Rs 5 lakh, which is to boost not only the consumption but also will help improve the economic activity in the sector,” says Manisha Bansal, Co-Founder, i2iFunding.

Credits : https://economictimes.indiatimes.com/wealth/p2p/p2p-lenders-give-thumbs-up-to-budget-2019/articleshow/67804195.cms

LenDenClub is India’s largest alternate investment platform which started operations in India in 2015. We have been helping investors diversify their investments beyond traditional investment instruments ever since.

About

Investment

The Reserve Bank of India does not accept any responsibility for the correctness of any of the statements or representations made or opinions expressed by Innofin Solutions Private Limited, and does not provide any assurance for repayment of the loans lent through its platform.

LenDenClub is an Intermediary under the provisions of the Information Technology Act, 2000 and virtually connects lenders and borrowers through its electronic platform via the website and/or mobile app.

The lending transaction is purely between lenders and borrowers at their own discretion, and LenDenClub does not assure loan fulfilment and/or investment returns. Also, the information provided on the platform is verified or checked on the best efforts basis without guaranteeing any accuracy of the data/information verification. Any investment decision taken by a lender on the basis of this information is at the discretion of the lender, and LenDenClub does not guarantee that the loan amount will be recovered from the borrower, fully or partially. The risk is entirely on the lender. LenDenClub will not be responsible for the full or partial loss of the principal and/or interest of lenders’ investment amounts.

 

*P2P investment is subject to risks. And investment decisions taken by a lender on the basis of this information are at the discretion of the lender, and LenDenClub does not guarantee that the loan amount will be recovered from the borrower.

** Average value mentioned is the weighted average of returns received by investors

© 2023 LenDenClub by Innofin Solutions Private Limited | CIN: U74999MH2015PTC266499

#InvestLikeHardik

Watch our latest commercial with Hardik Pandya.