Pre-Budget expectation: Govt should include definitive SOPs and tax rebates to encourage e-payments

India Infoline News Service | Mumbai | January 17, 2017 09:40 IST

A startup hub, India is currently home to the third largest number of technology driven startups in the world.

Bhavin Turakhia, Co-Founder and CEO, Directi
“2016 saw a slew of announcements made by the government. With the goal of putting our country on the path towards a cashless economy, the Union Budget 2017-18 should include definitive SOPs and tax rebates to encourage and boost e-payments. Moreover, to achieve the goal of financial inclusion, the government should also rationalize indirect taxes and charges levied with respect to digital payment transactions, and further incentivize companies operating within this space. To adapt to the need of time, government should also rationalize income tax provisions including provisions related to employee tax benefits such that payments/ documents in the digital medium are treated at par with physical instruments. 
 
As a natural corollary to the demonetization process, the time is ripe to increase the tax exemption limit and also the corporate tax limits. Steps should also be taken to help startups tide over its immediate effects. Furthermore, with the increase in cash flow within banks, advanced technological infrastructure will help facilitate seamless transactions and improve the overall banking system as we enter into the new financial year.  
 
A startup hub, India is currently home to the third largest number of technology driven startups in the world. The previous year witnessed multiple markdowns in the country’s startup ecosystem and, therefore, to propel this forward, the PM’s flagship ‘Startup India’ project should receive an impetus in the upcoming budget.”
 
The author, Bhavin Turakhia is Co-Founder and CEO, Directi.

 

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