IT and Startups: Budget Expectations 2019

 

Nominate independent institute for start-up valuation 

Mr Sachin Haritash, Founder, MavynSachin Haritash, Mavyn Digital Trucking

The impetus that the current government has made under the leadership of Hon’able Prime Minister Mr. Narendra Modi for cultivating ecosystem to encourage start-ups in India is noteworthy. By relaxing the rules for self audit of books for first 3 years the government has not only supported the growth of existing start-ups but also generated opportunity for young entrepreneurs.

Our request to the government for this budget would be to nominate an independent institute/entity who will be responsible for valuation of start-ups. This will result in creating a system of fair market valuation as per the standards of international market. Government validated valuation system will give confidence to international investors to invest in Indian start-ups. Creation of a single system for clearance and valuation will further boost the start-up ecosystem in India.

We are eagerly looking forward to this announcement in the upcoming budget.

Tax exemptions for start-ups for first 3-5 years will boost industry growth

Sanna Vohra Picture - Founder-The wedding brigadeSanna Vohra, The Wedding Brigade

What we need are all round changes that make life easier for start-ups that are trying to find their feet. Last year’s budget brought some welcome initiatives for the startup community with ease in MSME and income taxes/capital gains tax. Unfortunately, most startups did not qualify to benefit from them. What we need further are policies to ease operations. Startups need simpler regulation and compliance methods for GST, FDI, and other returns. Tax exemptions for start-ups for the first 3-5 years (or at least until they hit profitability) will help boost the industry’s growth. However, the most urgent need of the hour is relief from angel tax. Investor money is not income, it is used to create products and teams. Taxing investment is counter productive.