Budget 2014 Wishlist: Here's what IT companies want from FM

The Narendra Modi-led Government will present its first Union Budget tomorrow. With the promise that the new government would put technology in the forefront, the Indian IT industry has pinned hopes on the Modi government to push reforms and policies that will bring stability to the sector and maximise growth.

Here are some Pre-Budget expectations from technology companies in India:

Bhaskar Pramanik, chairman, Microsoft India
Microsoft, world’s largest software maker, expects the Union budget to unveil a policy guidance about the use of information technology for inclusive growth. “I am keen to see if there will be any policy guidance about use of information technology for inclusive growth especially in the areas of better citizen services delivery and governance,” Microsoft India Chairman Bhaskar Pramanik told PTI.

With the right push, innovative technology solutions such as use of TV whitespaces for connectivity solutions can definitely make a difference in the country, he said. “I expect some specific policy announcements in the Budget to improve local manufacturing, which would include cheaper power, scalable infrastructure, one-stop regulatory clearances and long-term tax incentives and free market competitive framework for local manufacturers.”

“I strongly believe protectionist measures like preferred market access do not encourage manufacturing,” he said. The company also expects simplified taxation rules within the country.

“I also hope to see some simplification in taxation rules. I hope the government will do more to promote a tax regime that is stable and remove retrospective tax implications,” Pramanik said, adding that he also looked forward to some timelines for GST implement and abolition of VAT.
Kedar Sabne, Financial Controller, Cybage Software Pvt Ltd

This year the budget has a different flavour all together. Last few budgets were “accommodative” budgets, this year the budget could be a “hope” budget. Every individual is aware that things will not change overnight, so a pragmatic approach is already built in the thought process; hence the task of the new majority government is to make right moves which will not daunt the hope of 130 crores Indians.

The budget should be a qualitative budget than quantitative budget, 6 months is not going to change the Indian economy’s numbers, every action initiated will take some time to reflect in the economy and these conceptual and pragmatic moves by the government will build in the required momentum and hope for “Ache Din”.

Decisive direct tax regime for better tax planning and corporate expansion, removing ambiguities in existing tax laws to avoid double taxation will boost corporate confidence of both Indian and foreign companies. Revisiting MAT provisions for SEZ and clarifying the status on DTC will bring in the required clarity.

Rolling out GST will ease out the existing multiple tax culture and the fight between state and centre on taxing transaction, thereby giving clarity to Indian business house to structure it’s trade policies.

The e-governance initiative is a big and logical step to broaden the tax base, but unless it has a proper grievance re-addressal mechanism, it will not be appreciated by tax payers, instead of just one central processing centre (CPC), the government should have nodal offices across cities where tax payers issues will be addressed with speed. In case there is a process flaw, some alternative approach should be allowed so that the corporate action are not hampered.

Young salaried class should be rewarded for being the genuine tax payer, they are the first who pay tds and then take home the net salary. The housing needs in this class are growing, some sop on the interest rates, increase in allowable deduction on account of interest and principal on housing loan and also increase in the amount of medi-claim should be looked into, this is certainly impacting their savings. The conveyance allowance can also be looked into to be fair to this honest class of tax payers.
Uday Challu, CEO, iYogi

“To be globally competitive, it is essential that entrepreneurship and innovation are encouraged. Unfortunately, many of our systems remain regressive and in some cases archaic when it comes to this. To begin with, simply starting a company can still take a month, and early stage domestic financing is non-existent. These barriers to entry must be brought down. Introducing tax incentives for investments in start ups, and allowing new methods of fund raising such as crowd sourcing, are only some examples of changes that should be made.”

Challu further added, “In recent years, the Minimum Alternative Tax (MAT) has increased considerably - from 7.5 percent to 18.5 percent. This has specifically impacted companies that operate within SEZ’s, and it’s important that it be brought down to a reasonable 10 percent.”

Geetha Kannan, managing director, India Operations of Anita Borg Institute
“The United Nations Development Programme’s (UNDP) third Millennium Development Goal has underscored the need to ’eliminate gender disparity in primary and secondary education in all levels of education by no later than 2015’. Will that happen? We are very positive that the new government which has come to power on the plank of development and also for its decisive decision-making premise will ensure that women empowerment will be one of its top most priorities. We at ABI believe that empowerment of women is extremely critical to sustainable development and the realization of human rights for all.”

Anita Borg Institute (ABI), a social enterprise, which is working globally, and specifically in India, to increase the representation of women and girls in Science & Technology fields through conferences, training programmes, networking platforms, etc has urged the Government to enhance its activities with regard to education, training and empowerment of women.

Geetha further said, “Women entrepreneurs should be offered soft loans and subsidies with financial institutions providing more working capital assistance. The budget should look at policies that will make micro credit system and enterprise credit system available to women entrepreneurs at all levels. On priority, the Government should help organise training programmes to develop professional competencies in technical, managerial, leadership, marketing, financial, production process and other skills. It should also encourage institutions which are in this realm.”