Mahesh Thakkar, the Director General of the Finance Industry Development Council (FIDC), has made three demands to Finance Minister Nirmala Sitharaman for review. In a post-budget memorandum to the FM, Thakkar has requested an exemption from TDS on payment of interest for listed debentures to restore the status quo.
FIDC has also appealed to amend the provisions so as to bring the sunset clause of section 194LD in line with that of section 194LC, to provide that the concessional rates will not be available in respect of interests on borrowings made from FIIs/ QFIs on or after July 1, 2023. Alternatively, FIDC has suggested to amend the relevant provisions so as to bring interest payable after July 1, 2023 on borrowings made from FIIs/ QFIs before July 1, 2023, within the scope of section 194LC.
Thakkar has further pleaded to reduce the loan amount threshold from Rs 2 million to Rs1 lakh in order to bring NBFCs at par with HFCs, banks, SFBs and other financial institutions.