InvestorQ : What sops does the BFSI sector expect from the Budget2022?
Anjali Desai made post

What sops does the BFSI sector expect from the Budget2022?

1 year ago
Roadmap clarity on privatization of PSU banks is required. Any such announcement will be positive, especially for the lower-tier PSU banks. The government may also extend the PMAY-CLSS scheme in-line with the government’s vision to provide Housing for All by 2022 as the pandemic has resulted in project delays. The industry also expects an increase in tax benefits on housing loans for interest payment and principal repayment. Redefining the ‘ Affordable Housing’ slab to expand benefits for homebuyers would also be beneficial for the housing finance sector.

The MSME sector has been one of the most impacted sectors due to the Covid-19 pandemic. Under the Atmanirbhar Bharat scheme and within the Covid-19 relief package, the government has undertaken several initiatives like ECLGS to promote the sector. Similar to the first and second waves, the current predicament with the Omicron variant can prove to be dire for MSMEs and their daily functioning. Rebate in taxation, simplifying investment, and offering further incentives to MSMEs are some expectations from the upcoming Budget.

Reducing compliance (GST) burdens and registration norms for online players would enable faster digitization of MSMEs. The government may also look at providing further tax incentives to enable people to buy adequate health insurance which has gained importance amidst the pandemic. A separate bucket for investment in life insurance for tax rebates under section 80 (C) is expected