Indian software industry body, NASSCOM (The National Association for Software and Services Companies) has made a proposition to Ministry of Finance that in the budget of 2016, startups be exempted from all direct and indirect taxes including minimum alternative tax to reduce their cash outflow and to help them sustain. The union budget is said to be released in February.
The organization also exclaimed regarding urgent need of removal of angel taxes that startups find to be a big blockade. Angel taxes are a big burden for those startups that need angel investment when bank loans or Venture Capital funds are not available.
Mr. R Chandrashekhar-the president of the industry body said that ease of doing business, regulatory reforms like ease of compliance, reliability on self certifications instead of audits and exemption from taxes will certainly help entrepreneurs to concentrate on larger aspects of business like nurturing innovative ideas and creating business model etc.
The software body has also recommended of a high-level committee to evaluate the recent trends in the technology market. The committee is expected to lead discussion to formulate policy.
This committee will also work on to lessen the problems surrounding the country’s ever-increasing ecommerce business as many states have already started to instil taxes on the e-commerce transactions.