“Ahead of the Union Budget, we expect focused tax reforms that remove long-standing operational frictions for NBFCs. Allowing loss carry-forward in genuine internal restructurings and rationalising ESOP taxation by deferring tax to the point of sale will help companies scale responsibly while retaining critical talent. Extending parity to NBFCs under Section 194A by exempting them from TDS on interest would further reduce compliance burden for MSMEs, ease working capital pressures, and enable smoother co-lending and credit flow.”
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