Tax cuts expected for IT sector

Tax cuts expected for IT sector

PUNE: With the latest innovations in the IT industry, experts from the industry are expecting a start-up and innovation-friendly budget. Experts from the industry said for India to dominate globally in the field of financial technology, artificial intelligence, Internet of Things, Blockchain technology, digitisation, the government should support start-ups and innovations in a different manner.

Speaking to Sakal Times, Data Xgen Technologies CEO Ajay Data said the government should support software product companies and offer incentives to boost innovation. “The sector expects measures which would provide a level-playing field for tech companies. The tech sector needs a cut in rate of Minimum Alternate Tax on SEZs as the current rate of 18.5 per cent is high. The goverment needs to bring in a holistic policy for Data Hosting and its accountability. There is need for authority or regulatory body that overseas implementation and action for data flow and storage in India,” added Data.

Cybage CEO Arun Nathani said, “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 dividend declared.

“Dividend received by shareholders is 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,” Nathani said.

Explaining the need to help start-up companies Intelligent Quotient Security System CEO  Harold D’Costa said as the government is promoting ‘Make in India’ initiatives, there should be  sops for such companies. “Many companies have their servers located outside the country and so if start-ups are boosted we can have indigenous companies for servers.”  said D’Costa.He further added, “Similarly Indian talent is working across the globe and if benefits are provided, they might work for the country and drive the ‘Make in India’ concept,” added D’Costa.  He said that to make cyberspace safe, the government should allow evidence of private labs to be accepted by judiciary. 

“Currently, the government cyber labs work at a slow pace, delaying the judiciary process. If the government supports private cyber labs, we can expect a swift judicial proceeding of cybercrime cases,” added  D’Costa. 

Cybervault Security Solutions Private Limited Founder Anil Raj said many start-ups shut down due to funds. “The government should help start-ups.There are many government projects and these start-ups can be appointed for such projects,” added Raj.

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