We have covered the #Budget2016 extensively for our reader from every perspective of technology player. If you missed our coverage of Budget 2016 reactions by Smartphone and Mobile Handset Makers then click here.
Before we share the Budget reactions from the Software & Web Service Providers. Have a look at what NASSCOM officials have to say about the #Budget2016.
Mohan Reddy, Chairman, NASSCOM
“Our wish list for Budget 2016 included three key priorities – policy bottlenecks including ease of business; nurturing start-ups, products and e-commerce sector; and clarifications on transfer pricing to enable inward investments in India. Budget 2016 only partially covers these priorities. Extension of Section 10AA for SEZ units till 2020 is a positive outcome though the imposition of MAT on startups will not allow the full impact of the benefits to be realized”
R. Chandrashekhar, President, NASSCOM
“The finance minister’s speech had a strong emphasis on leveraging technology to transform India. The initiatives announced today combined with swift implementation of Digital India will help to digitize India and provide effective citizen services. We would urge the government to move forward at a swift pace and build an effective PPP model”.
Software & Web Service Providers – #Budget2016
Mr. Pramod Saxena, Chairman & MD, Oxigen Services
“We are happy with the general direction of the budget as it lays emphasis on development of the rural sector, digitisation and reforms in banking. The digital literacy mission that has been announced which will target 6 crore households with financial literacy, with this the digital connect and payments connect will play an important role. Also, statutory status to Aadhaar will play a very big role in promoting digital payments, social benefit transfers and allowing several services beyond banking & insurance to be also be brought into its fold, whether it is government subsidies or government payments it will open a way for more government payments and subsidies to flow into the financial inclusion program.”
Kenny Ye, MD, UCWeb India
“Finance Minister Arun Jaitley has presented a well-rounded and constructive budget, focusing on most critical aspects of the economy.
Thrust on farm sector, increased spending on rural development and infrastructure planning shows that this government means business. The record digitization plan outlined is another major positive. The new digital literacy mission scheme will cover 6 crore additional households and bolster employability of rural youth. There is also the much-needed thrust on entrepreneurship training, higher education and skills development that will help make India a knowledge base. While the reduction in corporate tax is welcome, it is applicable only to select companies and is a minor negative. Measures to reduce tax hassles and address disputes, on the other hand, are a positive.
Tax exemption for Start-ups, amendments to Companies Act and allocation for Stand-up India scheme will further aid cost and ease of doing of business in India.”
Nigel Eastwood, Group CEO, New Call Telecom
“Overall I would view this budget to have a positive push to industries across the board. This budget focuses clearly on growth, development and job creation with particular focus on start-ups by giving them support via exemptions for 3 out of 5 years. With government initiatives like National Digital Literacy Mission for Rural Households and Stand Up India Scheme in place, these will help boost the startup scenario for the SCs, STs women entrepreneurs as it will help reach out to these under-served sectors of the population by facilitating digital technologies for consumers and markets. This is a balanced growth oriented budget with focus on accelerating on the fundamentals.
Soumitra Gupta, CEO, Togofogo
“We appreciate the Finance Minister’s move on Tax holiday for startups as every startup takes minimum three of five years to setting up the company. We welcome the effort by Indian government for startup industry. It will give a strategic boost to the current ratio of Indian entrepreneurs and will support the Startup India campaign by Modi Government.”
Padmanabha Krishnamurthy CFO, Paladion Networks
“It is a comprehensive budget covering various sectors and is focused on growth. With regards to IT sector to be more specific, few positive aspects are – thrive on innovation and patents from India, extension of SEZ deduction, increased focus on digital initiatives spend including rural areas are few things to mention. Though we will have to wait for more specifics, overall I think it is balanced budget. If government can emphasize on
Mr. Puneet Gupta, CEO, Buzzmeeh
“We welcome the Budget 2016-17 as it’s a well strategized move for Indian startup industry. 100 % deduction on profits for 3 out of first 5 years will definitely strengthen the base as it will assist in setting the right pace for the company. Additionally, the amendment to the Companies Act in order to ensure speedy registrations of fresh startups will also lend a positive boost to the startup ecosystem. These positive moves will surely encourage the entrepreneurs wanting to establish themselves as a key part of the economy.”
Aditya Agarwal, Founder, Wealthy.in
“It took us 45 days to register our startup last year. Bringing it down to 1-day is disruptive. It’s even faster than 3-days it takes to start a business in Singapore. The three-year tax-holiday and reduction of LTCG period for unlisted securities to 2 years is also a positive move for startups.It’s promising to see digital-India at the core of many initiatives. Aadhaar based delivery of financial services and subsidies will promote financial inclusion and bring more Indian households under the formal banking system.Government could have done more to promote participation of Indian households in financial markets. Pre-budget, there was an expectation of raising section 80C limit to 2.5 Lakhs. This move would have helped households reduce tax-liability and also channel some savings to capital markets through ELSS funds.”
Sudarshan, COO & Co-Founder, CreditMantri
“This budget has provided a number of benefits that has helped to increase cashflow and savings for the common man. Specifically additional Rs 50000/- deduction for first time borrowers, increase in limit of house rent paid to Rs 60000/-, increase in ceiling of tax rebate for small tax payers, will help lower and middle income groups to aspire for better & affordable housing. Further with more cash flow in the hands, he can plan finances better to either save or service loans and maintain good credit.”
Ambika sharma, Founder, Instappy
Government has recently been focusing a lot on the growth of woman Entrepreneurs in the country, cheering them to establish themselves. Allotting funds of Rs. 500 crores especially for them will encourage the startup ecosystem to reach another level. Furthermore, since last budget, service tax has been the topic of discussion and by giving 100% exemption; the Finance Minister has done his bit to act as an enabler. Startups can now more effectively and efficiently concentrate on establishing their businesses and weave their path.
Vamsi Krishna, CEO and Co-founder, Vedantu Innovations Pvt. Ltd.
“The launch of two digital literacy schemes for rural India to cover 6 crore households in the next three years, is a welcome step. As the digital literacy increases, it will potentially help the government in delivering quality education more efficiently in the rural areas. Once the basic foundation of digital literacy is laid, it will create significant scope for an ed-tech startup like ours to work towards providing access to quality education to the students in the remotest part of the country.
Startups and private companies can join hands with the government in achieving its vision of making quality education accessible for all students in the farthest corners of our country. Similarly, entrepreneurship training through MOOCs, skills-training of 1 crore youth in next 3 years and provision of Rs. 1700 crore for 1500 multi-skill development centres will help create a virtuous cycle of job creation, grounds up.”
Sumit Sood, MD, GlobalLogic India
“We welcome the Government’s plan to launch a mission to provide Digital Literacy for rural India, as it is a very forward looking move. One that will take the country closer to the goals of Digital India. The drive which will bring about 6 crore rural households under the umbrella of being digitally literate in the coming three years is definitely going to put India on the road to becoming an economic power. In addition, the move to create a digital repository for all school leaving certificates and diplomas will give the education system an edge it had hitherto lacked. Moving away from a paper-dependent to a digital-led system is a hallmark of all modern economies.” Said Sumit Sood, MD, GlobalLogic India.
He further added that “With significant attention on start-ups and Digital India, in the Budget, the Government has focused on tier-2 cities by providing higher budget allocation. This includes subsidies for infrastructural development and internet penetration. We believe that these steps provide a stronger thrust to the Digital India vision of the government. The Budget also reflects the Government’s increased focus on technology to support India’s economic growth.”
Virender Aggarwal, CEO, Ramco Systems
Managing fiscal deficit while addressing sectoral needs has been the focus of this year’s budget. From reforms to uplift Agriculture to providing education and healthcare, focus is on the common man. It is encouraging to see the thrust placed on Infrastructure. Good infrastructure is key to attract global investment and better rail and road connectivity will also give a boost to organized Logistics.
As an indigenous software product firm, we welcome the government’s move on royalty for patent developed and registered in India. This will drive organizations to file more patents and monetize their R&D investments. Also exempting 100% of profits for startups involved in innovation development in technology will boost the product ecosystem to flourish. Ramco, being a provider of Aviation solutions, is also happy to note an action plan being drawn out to revive the unserved and under-served airports.
Archit Gupta, CEO and Founder, ClearTax.in
Tax relief for low income earners who live on rent but do not get HRA -can reduce Rs 36,000 from their gross taxable income. This deduction was stuck in time and will be helpful for taxpayers in non-HRA category.
Tax relief in section 87A to those earning below Rs 5lakhs. This is only allowed to RESIDENT individual. Where Total Income Less Deductions (under Section 80) is equal to or less than Rs 5,00,000
Seems there will be a possible amendment in Section 80EE for first time home buyers – First home buyers to get addl deduction of Rs 50,000 if home loan < Rs 35lakhs and cost of house < Rs 50lakhs.
The Finance Minister has intended to give this benefit in Section 80EE to the lower income group who are purchasing their first house. Will be the much needed thrust to the housing sector in tier-2 and tier-3 cities.
Section 44AD amendments – Significant development for small enterprises and professionals such as lawyers and doctors, interior designers etc who can now relieve themselves of cumbersome account keeping and audit requirements by availing this scheme. This inclusion of professionals bound to see immense popularity. And will make the simple 3-4 page ITR-4S popular.
Anurag Avula, Founder and CEO, Shopmatic
It’s great to see reforms being proposed in favour of entrepreneurs, not only in urban India but in all parts of the country. The move for forming the National SC/ ST Hub with the Ministry of Micros SME to support SC/ ST entrepreneurs, is heartening to see.
Its also great to see that the Special Patent Regime proposed to power innovation and research has been initiated, which further fosters the country’s creative spirit.
It takes a lot of time and effort into running and building a successful business. What is great to note is that a bill is being introduced for ease of doing business and to enable registration of companies in a day, will certainly ease the process.
In totality we are quite pleased with the startup and entrepreneurial announcements, specifically the Special Patent Regime proposed to power innovation and research that we believe will nurture and mentor the next wave of tech stars that will drive a successful economy.
Vinod Murali, MD, Innoven Capital
Given the enormous debt burden on Indian corporates, measures which help in improving overall credit health of the economy are welcome and the Finance Minister’s move to hold the fiscal deficit targets at prior levels despite pressure to allow for growth, should be commended. This was not a budget with high expectation of drastic reform and many of the announcements have been tactical or to improve efficiencies. There is more sensitivity to entrepreneurship which is a good start but this area needs more attention in the years to come.
Sreevalsan Menon, Founder & CEO, Medikoe
“Overall very neutral for Healthcare sector, focused primarily on Insurance, however govt should have given thrust around sectors like Pharma, R&D, Rural healthcare centers, Affordable Healthcare for larger population, service tax exemption on healthcare,” this initiative must have stimulated the healthcare sectors, which must have lead to Access and affordable healthcare to the entire population of India.”
Pradeep Singh, CEO and Co-Founder, Vidyanext
“On education, the government needs to focus more on quality not just quantity. The latest Annual Status of Education Report (ASER 2014) shows that while school enrolment is high (96.7%), learning outcomes are alarmingly low. One out of two students in grade 5 cannot read text of grade 2 level. 55.9% of class 8 students cannot do simple division.
While the budget has welcome initiatives to increase educational reach across the spectrum, what is missing is an action plan to simultaneously improve learning outcomes. One solution is to help teachers become more effective by giving them easy-to-use technology tools that help students learn better. This will serve the twin goals of improving learning outcomes while simultaneously ensuring digital literacy for the new generation.
Vikram Oswal, Founder, Woozoe
“The 100% FDI in marketing of food products produced and manufactured in India sounds promising. I was expecting the decrease in service tax cess as 14.5% in the previous year’s budget seemed unacceptable by the public, which made a lot of services expensive. When it comes to Start-ups, in my opinion, exemption of tax from these companies for 3 years will provide a good boost to many start-ups as when a company begins to grow it needs a huge amount of financial support. With the tax exemption, a startup can look at focusing more on its growth without worrying about taxation”