Startups Must Be Exempted From Direct, Indirect Taxes: NASSCOM

Startups Must Be Exempted From Direct, Indirect Taxes: NASSCOM

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.


Note: We at Inc42 take our ethics very seriously. More information about it can be found here.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Startups Must Be Exempted From Direct, Indirect Taxes: NASSCOM-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Startups Must Be Exempted From Direct, Indirect Taxes: NASSCOM-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Startups Must Be Exempted From Direct, Indirect Taxes: NASSCOM-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Startups Must Be Exempted From Direct, Indirect Taxes: NASSCOM-Inc42 Media
Startups Must Be Exempted From Direct, Indirect Taxes: NASSCOM-Inc42 Media
You’re in Good company