Pranay Bhatia, Partner Direct Tax, BDO India also agreed that the ability to carry forward losses if the founder remains involved was positive, and said it was in line with the industry expectations.
Pranay Bhatia, Partner Direct Tax, BDO India also agreed that the ability to carry forward losses if the founder remains involved was positive, and said it was in line with the industry expectations.
"Increase in MAT credit entitlement to 15 years will also incentivise credit availability to startups," he added.
Snapdeal CEO Kunal Bahl said, "We commend the focus on growing the digital footprint in the country; enhancing digital infrastructure, capping cash transactions, reducing cash donations, using Adhaar Pay to enable more digital payments are significant measures."
He also welcomed the emphasis on skill development and technical education, saying it would enable India to successfully harness the demographic dividend.
Bipin Preet Singh, the co-founder of payments platform MobiKwik applauded the government's move to reduce corporate tax for MSMEs, as well as the digital push in the budget which "invests heavily in technology and digitisation." "Reduction in the corporate tax for MSMEs to 25 per cent will also go a long way in attracting more investment in the country. It will surely give the domestic sector a massive push and indirectly help the country in restoring its healthy GDP growth forecast," he said.
Entrepreneurship network TiE's president Anand Desai welcomed the move to allow MAT credit to be carried forward for 15 years, and relaxing the tax exemption period for startups. He also pointed out that FIPB being abolished, and easier FDI would be positive for startups.
However, the demand to carve out section 56 of Income Tax Act which taxes angel investments, for startups, was not addressed, and Saurabh Srivastava of IAN pointed out that it could impede the growth of innovative startups and job creation.
(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)
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