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Fintech start-up Zeta has launched three new digital solutions that will allow working professionals to increase their take-home salaries by up to ₹80,000 per head per annum.
The e-solutions — Fuel and Travel, Books and Periodicals, and Communications — form part of Zeta’s employee tax-benefits product portfolio, which already offers four tax-saving solutions as per legal provisions in the Income Tax Act.
The firm offers digital, paperless solutions where supporting bills and manual verifications of medical reimbursements, for instance, can be avoided using Zeta card and Zeta wallet. The solutions are offered free to corporates and employees, while Zeta gets a 1.1 per cent commission on every transaction from its 10,000 merchant partners. More than 300 corporates across industries have implemented Zeta’s solutions.
$25-million investmentThe company is investing $25 million in the current and next financial year that will be used for scaling up the business. Currently, Zeta serves 35,000 users and is targeting 1 million employees by April 2017.
Bhavin Turakhia, Zeta CEO and co-founder, said the problem area the company is solving is large. “Only 2.7 crore of the 5 crore employees in India pay taxes today. There are 26 allowances and 25 perquisites in the Income Tax Act by which salaried employees are permitted by law to save taxes. Meal vouchers, for instance, are used by just 8.5 lakh employees; only 30 lakh actually use medical reimbursements. If every company provided these Income Tax benefits, it would generate a large amount of savings for employees. However, it involves a lot of tedious paperwork, submitting bills, storage, logistics, expensive resources, multi-vendor management and manual checks that can be a nightmare for both employees and the companies.”
“Even if 1 crore employees could use tax-optimiser solutions, that translates to $12 billion more money available as spending power in the economy.” Founded by Turakhia and Ramki Gaddipati (CTO) in April 2015, Zeta has 300 employees and is present in nine cities.
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