The IT industry’s expects the budget to focus on dedicating significant funds to various industries like e-commerce, IT and telecom and bringing reforms for better policy implementation amongst others, while the startups unanimously want the Angel Tax abolished.
NewsBarons connects with leading IT industry experts and Startup entrepreneurs to compile a list of expectations from the upcoming Budget 2019.
Budget should focus on lowering the personal Income Tax slabs
For the year 2019, we are optimistic that this year, the union budget will focus more on Digital India initiative in order to shape the IT infrastructure and increase adoption of technology to encourage digitization. Last year, the budget did not really see any major inclusions for the IT sector. We also, feel that slashing of corporate taxes will help the larger companies and help Indian entities to compete globally and attract more investment to the country. In addition to this, it would be great to see the budget focusing on lowering the personal income tax slabs, and tax saving schemes which would lead to higher disposable income and directly benefit the normal taxpayer.
We expect a reduction in the rate of MAT on SEZs
IT Product companies, unlike services companies, have unique requirements hence the government has to support product companies and offer incentives to boost innovation, providing a level playing field. We expect a reduction in the rate of Minimum Alternate Tax on SEZs as the current rate of 18.5 percent is quite high. We also hope that the government cuts corporate tax rate to 25 percent across the board irrespective of turnovers, in the forthcoming budget, to spur economic growth. To amplify Make in India initiative, now is the time for the government to encourage product companies by introducing incentives which help them become globally competitive and take product innovation to the next level.