Page 14 - Banking Finance December 2020

ROUNDUP

The complete PDF with auto population should expect corrections along the PFRDA: Govt should make
of input tax credit will be available on way, the equity market may have more
the common portal (GSTN) from No- legs before it tops out. We raise EPS employers' share tax free
vember 12, GSTN said in a statement. estimates and index target," said Mor- Pension fund regulator PFRDA will pro-
gan Stanley equity strategist Ridham pose to the government to make em-
GSTN said it has augmented the capac-
Desai and Sheela Rathi in a note. ployers' contribution of 14% under NPS
ity of the gateway from 1.5 lakh to 3
tax free for all categories of subscrib-
lakh concurrent logged in taxpayers to
handle the expected sharp surge in the Aggregators may give 1-2% ers in the next Budget, chairman
indirect tax-related activities on the of turnover or 5% of Supratim Bandyopadhyay said.
portal after easing of lockdown. Employers' contribution of 14% in pen-
wages to social security sion under the National Pension System
Goldman sachs upgrades fund (NPS) scheme for the central govern-
ment employees was made tax free
India economic forecast Aggregators such as Ola, Uber, Swiggy from April 1, 2019.
and UrbanClap will need to deposit 1-
Foreign brokerage Goldman Sachs up- "We may propose things like 14% con-
graded its India gross domestic prod- 2% of their annual turnover or 5% of tribution by employers to be made tax
uct (GDP) forecast to a contraction of the payment to workers on their plat- free to all. Currently, it is given only to
10.3 per cent in FY21, as against its forms, whichever is lower, to the pro- the central government employers.
earlier estimate of negative 14.8 per posed fund to provide social security
cent growth. The United States - based benefits to such staff. The government "So we are requesting the government
firm said developments on the vaccine is in favour of setting the contribution to give it to all the employers, whether
at the lower end of the band, an offi- it is state governments or other corpo-
front - where two candidates have
cial said. rate entities, so that subscribers across
posted satisfactory progress - will be
very helpful in the recovery. The Re- The labour ministry published draft the board can get this benefit,"
serve Bank expects India's GDP to con- rules for operationalising provisions in Bandyopadhyay told.
tract by 9.5 per cent on real basis in the Code on Social Security, 2020, The PFRDA Chairman said states are
the ongoing fiscal year. passed by Parliament in September. asking that the 14% tax benefit be
The code envisages a social security given to state government employees
Morgan stanley sees fund for unorganised, gig and platform also. He said some state governments
workers, among other measures. Un- have written to the Authority request-
Sensex at 50,000-mile- der the draft rules, they will be able to ing the same.
stone in 2021 register themselves through Aadhaar Besides, the Pension Fund Regulatory
on a government portal to avail of
Morgan Stanley expects the bench- and Development Authority (PFRDA)
mark Sensex top the 50,000 milestone benefits from the fund. A dedicated will ask the government to extend the
by end of next year. The brokerage scheme for gig and platform workers benefit of tier-II NPS account as tax
believes the economic growth cycle is will be formulated soon after getting free for all subscribers.
not fully priced in. It has revised up- feedback, said the official cited above. Recently, the facility was granted to
wards the earnings per share (EPS) The scheme can provide disability the central government employees.
estimate for Sensex. Earlier, the bro- cover, accident insurance, health and
kerage had a target of 37,300 for June maternity benefits and old age protec- "There is this tier-II NPS account which
2021. tion among other measures. The was made tax free exclusively for the
schemes will be funded by contribu- central government employees re-
At 50,000, the Sensex would trade at
tions to the social security fund. The cently. So there also, we would request
16 times its estimated FY21 earnings- the government to give the facility to
which the brokerage projects will be central and state governments can all the subscribers. In the tax-free tier
15 per cent higher than FY20. also contribute to it, apart from the
platforms. Currently, unorganised gig II account we are keeping a lock-in
"We remain in a bull market that and platform workers are not eligible period of 3 years because you are get-
started in March, and even though one for any social security benefits. ting the tax-free status...And we want

14 | 2020 | DECEMBER | BANKING FINANCE