Post-budget 2018 Reaction Mr. Raghavendra Pratap Singh, Co-Founder, i2iFunding

The Budget 2018-19 has been extremely encouraging for the startups, mainly operating in the Fintech sector. The government has shown a keen interest in evaluating the policy framework and formulating an institutional model to create a conducive environment for the development of the industry. Besides, government’s willingness to promote the use of blockchain technology to encourage digital economy may prove to be a growth catalyst for the P2P lending industry.

Imposing 10% long-term capital gain tax on equity investments may create some level playing field for the P2P lending industry. So far, the favourable tax treatment on long-term gains on equity investments made them a preferred choice for the investors. Now, those who are ready to take higher risk for earning better returns may also think of investing in P2P lending projects which have a better risk profile as compared to equity-oriented investments.

Leave a Reply

Your email address will not be published. Required fields are marked *