Union Budget 2019

Union Budget 2019: 12 Expectations from the Technology Point of View

Although it is an interim budget, which is different from the General Budget, the IT industry and several startups have a lot of expectations from Union Budget 2019

Simplify Tax Structure – Arun Nathani, CEO, Cybage

Budget 2019 is an Interim Budget and the last roll of the dice for the current government before the General Elections. Hence, populist measures are expected.

Currently from an industry perspective, there is a double taxation on dividend. The companies have to pay corporate tax and tax on the dividend declared. Dividend received by shareholders is also taxable in the hands of an individual. So simplification of the tax structure will help the industry as well as encourage businesses. This will boost the economic growth further.”

Provide Clarity on Angel Tax – G S Venkatraman, Chief Financial Officer, Subex

While a lot of work has been done by the government on defining ownership of personal information and developing an Electronic Consent framework, what would be very useful is a frame work, which all the different partners looking to make available services to the owners of the personal data, can leverage in a legal and efficient way.

The RBI has developed a framework for financial sector participants. A similar framework for Telecom and other sectors, who would be able to leverage the information and make it available for interested end customers in a mutually beneficial commercial model, will go a long way to drive usage and adoption of high-end analytics in the country. Given the massive interest in automation and AI, the number of start-ups coming up to address this space is also growing dramatically. A lot of global private equity, angel investors and VCs are looking to invest in these start-ups.

It would be useful to provide absolute clarity on Angel tax provisions to provide a further push for investments in this space. Similarly, given the geographical spread of operations on start ups in the Analytics, AI and Automation space, the need for clarity on POEM and tax provisions will make business function more efficiently. Finally, rationalizing transfer pricing regulations will also go long a way on ease of doing business from India.

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