The National Association of Software and Services Companies (NASSCOM) is keeping high expectations from upcoming Union Budget 2015. The trade association urged Finance Minister Arun Jaitley that the challenges and difficulties faced by technology startups need to be addressed by the government.
The trade body in its letter to Finance Minister has recommended that the government must address regulatory and tax challenges for technology startups and SMEs and see to it that low asset based firms do not have any difficulty in accessing funds.
According to the Nasscom, new relaxing norms for tech startups can act as catalyst for government initiatives like Make in India and Digital India campaigns. The SMEs and technology startups need an environment of constant nurturing including access to funds, incentives to support operations and a simplified compliance framework and the upcoming Budget should concentrate on these aspects, it added.
Speaking on the expected series of reforms in the upcoming Union Budget, R Chandrashekhar, President, NASSCOM said, “The success of the flagship initiatives of the government – Digital India and Make in India not only offer tremendous opportunities for the innovation driven technology Industry, but its success also hinges on the sustainability and continued growth of the technology driven sector.”
NASSCOM has also suggested new provisions like offsetting manpower training cost, deferred tax credits for startups to leverage the global competencies of the ICT sector. The government should also extend provisions on deduction for employment and skill development (Section 80JJAA) and R&D credits.
The body also suggests that the government should extend incentives to the Indian Industry for adoption and implementation of IT tools for efficiency enhancement, ensuring sustainability and global competitiveness for the success of the Make in India program.