The National Association of Software and Services Companies (NASSCOM) on Wednesday proposed pre-budget recommendations to the finance ministry on redefining tax benefits and exemptions on startups.
It suggested that all startups be exempt from direct, indirect taxes including MAT. This move would reduce compliance burden and reduce cash outflows.
The recommendations also suggested that the companies may be allowed to carry forward losses even if there is change in ownership structure, if it is for capital infusion in the entity.
Chandrashekhar, President at NASSCOM said, “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.”
He also said that the number of tech startups grew over 40% last year. These startups can develop innovative solutions to address the development needs of the country, as startups focus on development solutions for health, infrastructure and energy among others.
Welcome to Flash Feed, your essential source for breaking news and innovation from around the web – bite-sized and updated all day.
