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Budget 2016: The National Association of Software and Services Companies (NASSCOM) submitted its pre-budget recommendations for the Startup and Ecommerce ecosystem to the finance ministry on redefining startups and tax benefits and exemptions on startups. FM Arun Jaitley will present Union Budget 2016 on February 29 and Nasscom is hoping that he provides a suitable boost for the sector. Here are Nasscom's top points to consider: (AP)
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Budget 2016: As per the suggestions made by NASSCOM, startups be exempted from direct and indirect taxes including MAT , a move that would reduce compliance burden and reduce cash outflows. Further there is an urgent need to remove angel tax that serves to tax the capital receipts, when the availability of financing from recognized sources such as Banks and Venture Capital Funds is unavailable and angel funds is the only available source. Similarly, NASSOCM strongly recommended that companies may be allowed to carry forward losses even if there is change in ownership structure, if it for capital infusion in the entity. (AP)
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Budget 2016: R Chandrashekhar, President, NASSCOM said that, “policy regulations like ease of compliance, reliance on self-certification instead of audits, tax exemptions for startups will allow entrepreneurs to devote their time, energy and resources to build upon their innovative ideas. With the number of tech start-ups in India growing over 40 percent over the last year , these startups can potentially develop innovative solutions to address the development needs of the country as startups focus on development solutions for health, infrastructure and energy amongst others.” (AP)
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Budget 2016: Investments in early stage startups are high risk and there is a need to rationalise tax rates for investors: i) Harmonise capital gains tax for resident investors with non-resident investors and tax rates for angel investors; ii) Allow proprietary domestic capital to set up an LLP as an investment vehicle; iii) Exemption of capital gains tax on income from sale of equity of a startup if the proceeds are reinvested in securities of new start-ups. (AP)
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Budget 2016: The Government’s stated vision on migration to a cashless economy is an opportunity for the nation to adopt technology and the Industry to develop innovative solutions. Internet driven start-ups dominate the entrepreneurial ecosystem today, developing disruptive solutions and business models. This gives rise to interpretation issues in case of applicability of taxes – similar to what the IT services and product Industry continues to battle with. (AP)
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Budget 2016: Ecommerce is a powerful instrument that encourages people to transact online, offering traceability and transparency. However, there are disturbing trends whereby States are considering taxing ecommerce transactions thereby introducing barriers to technology adoption. Therefore, NASSCOM proposed a high level committee to evaluate of emerging trends and technologies, which should be should be institutionalized to provide inputs and triggers for policy roadmaps. Regular dialogue has also been recommended between relevant Government agencies and various stakeholders to keep the regulatory framework abreast of the times. (AP)
Govt extended ITR AY 2025-26 deadline, but only 4.56 crore returns filed so far
