Pre Budget Expectations From Mr Harsh Vardhan Lunia, CEO & Co-founder, Lendingkart

Pre Budget Expectations From Mr Harsh Vardhan Lunia, CEO & Co-founder, Lendingkart

Pre Budget Expectations From Mr HarshVardhan Lunia, CEO & Co-founder, Lendingkart

“The recently launched ‘Startup India’ initiative has stirred-up optimism amongst entrepreneurs. However, there still subsists a need to exempt startups from direct and indirect taxes, with MAT (Minimum Alternate Tax) being the key one as it will help entrepreneurs reduce burden and cash outflows. While tax holiday certainly brings a sigh of relief, it may not be beneficial for many technology startups who do not make profits in initial years of their commencement. Therefore, such startups should be able to claim benefits of tax holiday of 3 years within a period of minimum 5 years from inception. Furthermore, since service tax liability proves onerous for entrepreneurs, there is a need to reconsider that as well. Another critical aspect is the elimination of long-term capital gain taxes for investors in unlisted startups so that they are able to attract more funding from angel investors. Considering the pace at which tech startups are growing in India, it has become even more crucial for us to push the ‘Digital India’ initiative. Currently, the IT penetration level in India is at 19 percent which is quite low as compared to other developed and developing countries. For us to realize the dream of a digitally connected country, it is imperative to have a robust digital infrastructure in place and encourage mobile internet usage amongst citizens as much as possible. Moreover, tax relief for buyers on purchase of computers and mobile phones will also enhance internet penetration in the country.”

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