I would like to see clarity and consistency, when the Budget is announced. That enables us to make longer term strategic plans for the companies we run. As the software services companies become global, we need to move to more value added services so that we can effectively compete with the global companies in this space, especially in these tough economic times when overseas markets are becoming protectionist. It will also allow the IT industry to move to the tier II and III towns and help spread the ‘digital’ revolution to more and more people away from the big cities.

There are some specific actions I would recommend and for these I will try and give the relevant sections etc. For others, I will cover the general issues and give some examples of the areas where I think they can remove ambiguity and provide clarity. Then there are some areas of development and market growth that I think would be important for us as we look to India in the future. Finally, unless we have the trained and skilled manpower to do this, a lot of our ambitions would not be fulfilled. Let me list these.

* Extension of availability of benefits under Section 10A/ 10B for units in STPI/EOU. It is imperative that the government announces an extension of the fiscal benefits under Section 10A/10B to mitigate impact of the recession and protectionist measures being adopted globally.

* Amendments in the Section 10 AA of the Income Tax Act: The finance minister had earlier stated in the interim budget that the anomaly in Section 10AA will be corrected through necessary changes in the Act. The necessary changes in the Act need to be implemented.

... contd.