By K Ashwin Mobile: 09920183006 Email:firstname.lastname@example.org
Further to the announcement on the Union- budget 2018 today, please find below quote from Adhil Shetty CEO and Co-founder BankBazaar. Please reach out for more specific inputs from personal finance perspective.
Views on Insurance
“Rs5Lac is a great mediclaim amount and 50 Cr individuals is a great target. This will create tremendous awareness for medical insurance in the same way as Jan Dhan which ensured every Indian to have a bank account. This will push for every Indian to have medical insurance. On life insurance the PM Jeevan Jyoti Bima Yogana including Rs 2Lac Life cover is being pushed across a larger base which is a great sign. Rs 2 Lac critical cover is also being extended to a larger base.”
Views on Taxes
“Reduction of corporate income tax for companies with revenue up to INR 250Cr is a big announcement and will benefit more than 99% of the companies in India. The framework is still to be analyzed to qualify the benefits. Another announcement on standard deduction of INR. 40,000 for salaried class is a great step to simplify the taxation process. Though the effect would not be much as the 40k deduction in lieu of medical and travel allowance effectively only means INR 40k- (15k+9.6k existing ) which is only INR 15.4K extra non-taxable income. At 20% tax slab, it is approximately INR 3080 in hand for full year. This will further get reduced because of the increase in health and education cess of 1% on tax (existing 3%) which means only approx. INR 2000 in hand per year increase”
Fintech perspective :
“The budget overall is positive. There is visible support for Fintech industry as the FM specifically mentioned that Fintech is playing an important role in countries growth and hence announced setting up a working group for its growth. The biggest announcement was about insurance and Rs5Lac is a great mediclaim amount and 50 Cr individuals is a great target. This will create tremendous awareness for medical insurance. Also, reduced corporate income tax for companies with revenue up to Rs250Cr is a big one. There are couple of points which will raise questions. The 3.5% fiscal deficit in FY18 and 3.3% fiscal deficit target in FY19 is slightly higher than expected which will impact the borrowing cost for Private sector. Second, introduction of tax on LTCG exceeding Rs. 1Lac after 14 years.”
“The announcement of the LTCG on equity investments and 10% DDT saw the Sensex plunge 1% within minutes. However, the markets seem to have recovered immediately signalling that equity investors — including mutual fund investors — would absorb these blows and keep investing as per their financial objectives. After all, equity remains one of the best-performing asset classes.”
Please find below a brief profile of BankBazaar and Adhil Shetty for your reference.
Feel free to call if you need any additional information.
Adhil Shetty is the Co-founder and CEO, BankBazaar.com: a digital organization focused on helping consumers access ﬁnancial products in a completely paperless way. Adhil’s vision is to enable banking become entirely paperless and bring it completely online through BankBazaar to democratize ﬁnance and increase ﬁnancial inclusion.
Under Adhil’s leadership, today, BankBazaar.com is India’s largest ﬁnancial marketplace with 75+ integrated ﬁnancial institutions and 44 Million visits per quarter, and the ﬁrst Indian Fintech to expand operations to international markets.
He represents BankBazaar at the Internet & Mobile Association of India (IAMAI) and is the convener for the IAMAI Regulatory Committee. He is also actively associated with CII’s Fintech and the Assocham’s eCommerce Committees. Adhil is part of the LinkedIn Power Proﬁles List for 2017, and has been named as one of India’s best professionals and entrepreneurs under the age of 40 by the Economic Times and Fortune India.
BankBazaar.com, ranked as the best financial website in India by the Internet And Mobile Association of India (IAMAI), is India’s first neutral online marketplace that gives you instant customized rate quotes on loans, credit cards or any other personal finance products. It simplifies the loan application process. Anyone can instantly search for tailor-made offers, compare, customize it as per his or her need or profile and apply for their finance products. It is designed with smart technology capabilities and over 50 of India’s leading financial institutions and insurance firms have chosen to integrate themselves with the platform. For the online consumer today, banking is as easy as shopping for anything online.The services are available through the web-portal, made-for-mobile web service, or the BankBazaar app available on the Android play store and iOS app store. It helps consumers compare best offers across various banks and NBFCs. Apart from these, it gives the consumer the latest news/trends and insights into managing finances better. The consumers can track their application and troubleshoot issues in the process through a host of channels like the BankBazaar app, WhatsApp, Email, Voice-support etc.