Budget 2020: Fintech startups expect lower corporate tax rates, more transparency

Budget 2020: When the Finance Minister Nirmala Sitharaman will present the Union Budget 2020 in Parliament on February 1, fintech startups would be hoping that the government maintains the already lowered corporate tax rate of 22% that has helped them scale up operations.

Fintech startups would be hoping that the government maintains the already lowered corporate tax rate of 22% that has helped them scale up operations. Source - Pixabay.

Budget 2020: When the Finance Minister Nirmala Sitharaman will present the Union Budget 2020 in Parliament on February 1, fintech startups would be hoping that the government maintains the already lowered corporate tax rate of 22% that has helped them scale up operations. They also expect reforms that bring in more transparency and critical steps towards ensuring ease of doing business.

"We certainly expect the government to maintain the currently lowered corporate tax rate of 22%, which has a direct influence on the scale-up plans of an organization, especially Startups. This will enable liquidity of funds to invest back into the business, allow them to build research & technology verticals and aid overall expansion," Hemant Vishnoi, co-founder of EnKash said, while adding that the slabs should in fact be reduced.

"The government should in fact consider bringing the corporate tax slab for startups further down, to enable financial empowerment. This will be a definitive step towards supporting the startup ecosystem and genuinely aid in growth. We also hope that the DPIIT registered Startups will continue to enjoy waiver on Angel tax, which will help them attract more investors in the future," he said.

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A change in the GST structure and new policies that are more inclusive of private sector are other major demands which will help participation in the upcoming mega projects, believes CashKaro co-founder Rohan Bhargava.

"Speaking on a macro level, the government should consider making the necessary amendments in the current GST structure to make it more friendly for the private sector. It is among the critical steps towards ensuring ease of doing business and will go a long way in ascertaining compliance. It should also introduce policies that are more inclusive of the private sector and enable their participation in the upcoming mega projects (such as infrastructure). This will not only be an economically progressive step but will also bring in more transparency into the system," he said.

Rohan added that the industry also expects a waiver of Angel tax for the DPIIT registered Startups, as announced in July last year.

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