“Policy regulations like ease o compliance, reliance on self-certi fication instead of audits, tax ex emptions for startups will allow entrepreneurs to devote their ti me, energy and resources to build upon their innovative ideas,“ R Chandrashekhar, president of Nasscom, said in his recommenda tions to the ministry.
The Union Budget will be relea sed in February. Nasscom had con sidered the 2015 budget a `mixed bag’ and had said that severa chances had been missed to impro ve the lots of startups.
Nasscom had asked for the com pany to remove the angel tax in las year’s budget.
The IT industry body also wants the government to make it easier for individuals and funds to inves in early-stage startups, which is a high-risk business.
Nasscom wants the governmen to harmonise capital gains tax for resident investors with those of non-resident investors and tax ra tes for angel investors. It also wants the government to allow proprietary domestic capital to se up limited liability partnerships as an investment vehicle.
In addition, the lobby group wants the government to exemp capital gain tax on income from sa les of startups if they are then re invested in securities of new startups. Nasscom has also proposed a high-level committee to evaluate the emerging trends and technologies. The committee will lead discussions and create inputs that would be used in formulating policy.