NBFCs ask Sitharaman for liquidity window, tax sops in Union Budget

Financial sector players, in the pre-Budget meeting with Finance Minister Nirmala Sitharaman on Thursday, asked for a dedicated liquidity window for non-banking financial companies (NBFCs), and tax incentives.

Liquidity and solvency issues of NBFCs need to be handled separately case by case, IDBI Bank Managing Director Rakesh Sharma told reporters after the meeting.

NBFCs sought exemption from having to deduct tax at source for interest payments. At present, banks and insurance companies have this exemption. 

The tax deducted at source (TDS) on interest paid to NBFCs is 10 per cent.

The Finance Industry Developm­­ent Council (FIDC), a lobby group for