Financial Sector Demands Tax Sops in FY25 Budget

Financial sector players sought tax incentives in the upcoming FY25 Budget during a pre-Budget meeting with Finance Minister Nirmala Sitharaman. They proposed stable, long-term tax policies and addressed issues such as capital gains tax, securities transaction tax, and GST demands on NBFCs and asset management companies.

Financial sector players on Thursday advocated for tax incentives in the forthcoming FY25 Budget to bolster market growth.

During a pre-Budget consultation with Finance Minister Nirmala Sitharaman, stakeholders suggested resolving tax arbitrage issues.

This was the second session of Pre-Budget Consultations, attended by leading financial and capital market experts ahead of the 2024-25 General Budget, as noted by the finance ministry on X.

The full Budget for 2024-25 is slated for presentation in Parliament next month.

After a two-hour meeting with the finance minister, Arun Kohli, MD & Country Head of Morgan Stanley India Company, emphasized the need for stable and long-term tax policies.

Participants also discussed capital gains tax and securities transaction tax. George Alexander Muthoot, MD of Muthoot Group, indicated that some players pushed for market depth and tax incentives.

'We've suggested that with the growth of NBFC credit and RBI's concern over bank dependency, SIDBI and NABARD fund allocation for NBFC refinancing should increase,' said Raman Aggarwal, Director of FIDC.

NBFCs also sought clarity on GST for co-lending and service fees, added Aggarwal.

Asset management companies raised issues concerning GIFT CITY and strategies to retain capital within the country.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)