Catch 40+ Post-Budget Reactions 2017-18: Startups & Corporates
Since start-ups often do not generate any profits for the first few years of their operations, increasing the consideration period to seven years will benefit more start-ups and promote entrepreneurship across the country.
“This budget is good on intentions and is a fairly balanced one. We welcome the tax exemptions and other measures that the Government has announced for SMEs and start-ups. While the push has majorly been for a Digital India, cashless economy and rural development, I was expecting more grass-root level policy measures for the welfare of the SME and the IT sectors. However, I am hopeful that this budget would provide the much-needed boost to the economy and help it register better growth than the past year,” said Shashank Dixit, CEO, Deskera
“The Union Budget for 2017–18 looks promising for the education sector. I see the process of standardising curriculum, which has been the need of the education sector for very long, finally turning into a reality. The proposal to launch National Testing Agency to conduct all major entrance examinations is a milestone.Besides that, this step would also free students from the burden of taking different entrance examinations. The finance minister emphasised that science education would be the focus in schools. He also mentioned that ICT-enabled education coupled with a system mapping the annual learning outcomes of students has the potential to boost the learning process of kids. This could be the beginning of the proliferation of Learning Management System (LMS) in Indian schools. ” said Mr.Beas Dev Ralhan,CEO & Co-founder, Next Education India Pvt. Ltd. said,
“Big digital push is the thrust of the Budget and is a very welcome and the right move for the future growth of the economy. The budget also promoted the startup ecosystem with tax benefits. Reduction in the corporate tax for Medium and Small Scale Enterprises (MSMEs) to 25% will also go a long way in attracting more investment in the country. It will surely give the domestic sector a massive push and indirectly help the country in restoring its healthy GDP growth forecast,” said Bipin Preet Singh, Founder & CEO, MobiKwik.
Mr. Himanshu Bindal, CEO & Founder, One Internet, a co-working space, said,“The 2017/18 budget seeks to pursue prudent fiscal management to preserve financial stability. It will help start-ups as it proposes to cut income tax rate in 2017/18 for small companies, extends relaxation on withholding tax on foreign investor's interest income from debt until June 30, 2020 and proposes change in capital gains tax in real estate, land.”
Mr. Sandeep Aggarwal, Founder, ShopClues and Droom, said “The Union Budget 2017-2018 is a progressive economy budget. The government has mentioned everything right from reducing fiscal deficit gap to cleaner GDP growth, expansionary nature of monetary policies to reducing the tax for income bracket of Rs 5 lakh. Profit linked-deductions for start-ups getting reduced to 3 years out of 7 years is a big relief for the startup ecosystem. Until, last year government had given three year tax holiday and MAT (Minimum Alternative Tax) which was going to expire by 2019 and now has been extended to 7 years. However, there are a lot of things I was hoping 2017 Union Budget to touch upon for example policies to ensure that capital is easily accessible to entrepreneurs, repatriation of money coming to India, R&D credit, no capital gain for any kind of start-up sale or exit and to make foreign listing for any Indian company straightforward. These pointers should have been addressed. Nevertheless, increasing the tax holiday from 3 years to 7 years is a welcome change and startup friendly.”
Dr. Apoorv Ranjan Sharma, Co-Founder, Venture Catalysts, said “Union Budget 2017-2018 is a progressive economy budget. The government has introduced the right policies, from reducing fiscal deficit gap to cleaner GDP growth, whilst promoting digitalization and growth of the rural sector. For the Startup economy, there is a significant relief in deductions within profit-linked available to seven years from the current five years. Furthermore, the deduction in corporate tax is a great boost for the companies with turnover of 50 crores or less. Besides, SMEs with turnover up to Rs 2 crore, will enjoy tax relaxation from 8% to now 6%. The move is going to waive off the financial burden, while propelling small merchants on their path to success.”
Mr. Rahul Agarwal, MD & CEO, Lenovo India, “The Tech-India agenda in the budget is a great highlight for the IT companies. We are pleased that the budget addresses the last mile connectivity issue which was a missing link in the earlier plans. Digi Gaon and Bharat Net are positive steps and will inevitably boost IT penetration. Focus on Digital Literacy will act as an enabler for job creation and skill development. Thrust on such initiatives provide an impetus for companies like Lenovo. However, we would expect more proactive measures from the government on ease of doing business as the cost of compliance in India is higher as compared to other countries, because of which large scale manufacturing is not yet shifting to India.”
Archit Gupta, CEO and Founder, ClearTax said, “The govt has proposed to abolish FIPB. This is a significant move for startups eco-system. The govt has proposed automatic FDI approval route. This is also a move towards ease of business - as obtaining FIPB approvals involved time and effort. This is an excellent move for removal of lengthy and time consuming approval processes. We are awaiting further details on this.”
Ajith Mohan Karimpana, CEO and Founder, Furlenco said, “This budget is a continuation on the path towards improving tax administration & compliance and increased emphasis on digital transactions; Similarly the attempt to clean up political funding is also commendable.
However, given the strong emotions that the Demonetization exercise evoked from the country at large and impending implementation of GST, the government refrained from bringing in any pathbreaking changes on direct taxes. Specifically coming to the extension of tax break for startups to 7 years, this change was definitely required as there are very few startups that actually generate profits in first 5 years of their existence; reduction in corporate tax rate for entities with turnover less than Rs.50 Cr may not be of much use for new age startups that take 5-7 years and much larger turnover base to turn profitable. Overall on a scale of 10 we would rate the budget 6.5.”
Aneesh Reddy, CEO and Co-founder, Capillary Technologies said, “As a retail and technology centric startup, we were hopeful around 3-4 high impact areas revolving around digitization measures, GST, corporate and individual taxation laws and differential duties on certain products. Overall, this budget has created the most positive impact as far as digitization measures are concerned. The digital transformation initiatives coupled with a spike in the digital transactions would encourage more startups like ours to play a vital role in innovating and significantly contributing to boost the digital economy in the country.
Anurag Avula, CEO and Founder, Shopmatic said, "It’s agreeable to see positive reforms being proposed in favour of digital pay systems for the common man, more specifically in rural and semi-urban areas. What is interesting to note is the government’s interest in start-ups and on energising youth & creating jobs. The Profit linked-deductions for start-ups that has been reduced to 3 years out of 7 years, will certainly ease the process. In all its completeness we are quite pleased with the start-up and SME announcements. We believe that the fresh moves made will cultivate the rising upsurge of tech and digital initiatives to further energize the GDP of our nation."
Mr. Vishwavijay Singh, Co-founder, SaleBhai.com. said, "The hero of the Union Budget 2017 is definitely the rural sector, with finance minister Arun Jaitley allocating Rs 1,87,223 crore for rural-agri development. He spoke of doubling farmer income in five years, keeping agriculture credit at Rs 10 lakh crore, and increasing cultivation area for kharif and rabi crops among a slew of forward-looking measures. Another important feature of the Budget is the Government's resolve to ramp up infrastructure, which should help in taking forward the government's Digital India campaign. As an e-commerce player, I see consumption in rural areas going up. With rural areas likely to witness greater digital penetration, the e-commerce sector is surely to benefit."
Mr. Sameer Grover, Founder and CEO Crownit said, “Overall the budget is pro-entrepreneurs which will help create jobs in India, hire skilled talent at low cost and also improve industry output. Two specific highlights of the budget which particularly enthuse me are: Firstly the easing of tax for India based funds and FDI/FIPB changes- this will give a big boost to early stage startups. Secondly, the tax exemption for startups, now that's a big support to the Indian startups
Ms. Ambika Sharma- Founder & MD, Pulp Strategy Communications said, “The latest budget announcement holds great promise. I am particularly enthused by the hike in capital allocation for women skill development initiatives to INR 1.84 lakh crore for the 2017-18 fiscal. This move will empower women across the country and help them in becoming active contributors in the country’s growth. The allocation of INR 10,000 crore for the BharatNet project is also promising, as it will bring high-speed internet connectivity to rural citizens in nearly 150,000 gram panchayats through Wi-Fi hotspots. Given that corporate tax is one of the major expenses for the country’s MSMEs, the cut in tax rates will promote greater growth within the sector and will allow Indian businesses to become more competitive globally. Increasing the period for profit-linked deductions to three years out of seven years as against five years is also extremely positive news for the country’s entrepreneurial landscape. Since start-ups often do not generate any profits for the first few years of their operations, increasing the consideration period to seven years will benefit more start-ups and promote entrepreneurship across the country. The setting up of Payment Regulatory Board by RBI to replace BPSS (Board for Regulation and Supervision of Payment and Settlement Systems) as the regulator of electronic payments is also a promising development in the quest to become a less-cash and digital-first economy.”
Mr. Ramki Gaddipati, CTO & Co-founder of Zeta said, “It is encouraging to see that government is moving forward on payment system regulation. We hope the setting up of a separate payment regulatory board will help in improving interoperability and innovation. The Finance Minister also announced digital infra related measures and we hope all these steps will help more and more people joining the digital ecosystem. As expected Finance Minister made a formal announcement on the launch of AadhaarPay in today’s budget and I am confident that this will push digital payments to grassroots levels of the country.”
Mr.Prateek Bhargava,CEO & Founder,Mindler said, “This initiative of the govt. is in the right direction. However even before measuring learning outcomes the emphasis has to be put on quality of education provided. We know significant gaps exist in the delivery of education, infrastructure in schools, adoption of technology and latest methods of learning. This initiative has to be driven with adequate focus towards substantial investments towards upgrading the process of imparting education. Not all of India’s millions are required to become engineers, doctors or college professors. Recent governments have made great strides with regards to upskilling India but when you’re looking at employment for a working population of 860 million by 2020, radical approaches are required.”
Mr Arun Bhati, COO & Founder, Orahi said "This budget has got some good aspects for startups, fortunately in line with our expectations, extension of profit linked deduction from 3 years to 7 years is a good move. Also tax reduction for companies below Rs25 crore and carry forwarding losses, if the founder remains involved, are excellent steps. Focus on digital infrastructure and cash less economy is also going to provide impetus to the growth."
Mr. Ankit Agrawal is the Managing Director of Alankit Limited said, “Union budget 2017-18 is progressive in its approach from an economic and policy reforms stand-point as the key focus is on transforming, energizing and moving towards building a clean India. Much emphasis has been laid on ushering in digitally enabled transparency measures in the governance system, skilling the youth, creating more jobs, encouraging and enabling innovation and quality within the education and business sector and reviving the financial sector. Measures like tax exemption for startups with less than 25 crore turnover working towards innovation, development, deployment or commercialization of new products, processes or services, driven by technology or intellectual property would encourage a culture of entrepreneurialism within the business economy.”
Mr Vivek Khandelwal, Vice President, Delta ID said, “We welcome the duty exemptions on iris enabled PoS devices, and are truly excited about the strong emphasis the government has placed on Aadhaar enabled payment initiatives. With all the foundations with respect to standards, certifications, and availability of devices, already in place, this impetus will further accelerate the adoption and integration of Aadhaar in programs and processes that touch the everyday lives of the people of India"
Atul Rai, CEO and Co-founder, Staqu said, "The Union Budget 2017 doesn't provide any direct benefits to startups this year. Besides, the tax exemptions from capital gain are rather difficult to meet, at least in the early stage of 3-5 years for a startup. However, the newly announced exemptions for income tax of common people and well-rounded push towards digital payments will ultimately increase the buying capacity, along with mobile phone utility. These institutional changes, I believe, will push towards the growth of new age digital startups, albeit indirectly."
Mr. Vijay Shekhar Sharma, Founder & CEO - Paytm said, "It is a digital economy budget. Government has pushed the digital theme in every area of the budget. Every person from a small shops to consumers are pushed towards the digital economy. Tax benefits, incentives to use digital payments and extending loans based on a digital footprint will create a larger merchant ecosystem for digital payments. Incentives for labour intensive sectors including housing, farming and dairy will help SMEs to create new jobs. Focus and attention to bank NPAs, as well as increasing bank capitalisation is great step towards strengthening the financial system of the country. Finally, the income tax rate changes will encourage more people to report their incomes and create a larger tax net for the country. Overall, it is a great budget that will encourage people to move to the formal economy and derive benefits."
Mr. Sachin Sharma, CEO, GEM Enviro Management Pvt Ltd. said, "Overall it’s a good budget with no major changes. Though the Textile sector has not been specifically mentioned but following aspects will favor the sector:- Reduction in corporate tax rate from 30% to 25% for companies where turnover is less than Rs. 50 crore is expected to enable the MSME companies in Textile sector. This will help them allocate their resources in expansion and growth and is therefore a welcome step in that perspective.Reduction in personal tax rate in the slab Rs 2.5 lacs to Rs 3.0 lacs will increase the disposal income of individuals which will empower them with better assets. This in turn will increase their purchasing power and lead to increased consumption and procurement of goods and apparels. And, No tax hikes again is a relief for the industry.”
Mr. Abhiraj Bhal, Co-founder, UrbanClap said, “The new policy proposed in the budget, allowing startups a 3 year tax holiday in the first 7 years of their existence is a welcome change. However, this policy could have been more impactful had it included startups incorporated prior to 31 Mar'16, and extended the period when the tax holiday can be availed from 7 to 10 years. Equally importantly, while the present Ministry and Department are very committed to their work, to avoid future mis-use of this policy, clear guidelines and definition of a startup should be laid out, and any subjectivity in the granting of these tax holidays avoided."
Mr. Rajiv Vij, CEO & MD, Carzonrent.com said, “The Union Budget presented brings out the progressive outlook of the government for Businesses as well as individuals. The investments proposed in the area of skill developments are a welcome step. The investments in building National Highways is a welcome step for the car rental industry. The impact of the demonetization drive is visible with progressive steps taken for an inclusive and cashless economic future of India."
Ms. Sakshi Vij, Founder & CEO, Mylescars.com said, "The Union Budget presented is a welcome change. The governments focus on inclusion and encouragement of the MSME sector along with Startups is visible. The increase in the Profit linked deductions period to 3 out of 7 years is a welcome change for young startups like us. The exemptions proposed for the Indian entities with Foreign placed portfolio investments is also a step in the right direction."
Ms. Sangeeta Banerjee, Co-Founder & CEO – ApartmentADDA said, "When it comes to Real Estate / Housing, the Budget is solely oriented towards boosting Affordable Housing, as expected. Affordable housing defined as House Cost up to Rs.50Lakh or Carpet Area of 300 sqft in metros and 600 sqft in other cities.. This definition varies for different benefits in the budget.
For urban Apartment Communities or RWAs, a positive Budget announcement is for the Govt will Undertake important reforms by providing legal framework for dispute resolution and re-negotiations in PPP projects and public utility contracts. A robust PPP framework as well as dispute resolution will make this a win-win for the Gov as well as forward-thinking neighborhoods."
Mr. Sunil Gupta , Founder & Director, ExportersIndia.com said,"With “Transform, energise, and clean India, that is Tech India” this budget has upped allocation for rural, agriculture and allied sectors by 24% has opened scope for increasing investments and yielding multiple benefits. The rapid growth in manufacturing sector is a good sign for overall economy. The new FDI policy is a welcome move. MSMEs and start ups have all the reasons to cheer with a dip in income tax to 25% for companies with an annual turnover of Rs.50 crore. Their grin grows wider with the FM proposing dip in bank lending rates. Incentives such as cash backs, referral schemes on BHIM app is all set to push the use of digital transactions which is yet another reason for MSMEs to move to online business models. The lowering of Income tax would also increase the spending capacity which will benefit the SMEs."
Mr. Vishwavijay Singh ,Co-founder, SaleBhai.com said,”The hero of the Union Budget 2017 is definitely the rural sector, with finance minister Arun Jaitley allocating Rs 1,87,223 crore for rural-agri development. He spoke of doubling farmer income in five years, keeping agriculture credit at Rs 10 lakh crore, and increasing cultivation area for kharif and rabi crops among a slew of forward-looking measures. Another important feature of the Budget is the Government's resolve to ramp up infrastructure, which should help in taking forward the government's Digital India campaign. As an e-commerce player, I see consumption in rural areas going up. With rural areas likely to witness greater digital penetration, the e-commerce sector is surely to benefit."
Mr Aditya Loomba, Joint Managing Director, ECO Rent A Car said, “The budget was ore or less as per my expectation, as it focused mainly on infrastructure growth like roads, sanitation, affordable housing etc. It also focuses on implementation of recent demonetization and digitization policies.Personally, I wished there could have been more focus on our Tourism and Hospitality industry as it has a much greater potential for growth and needs suitable investments.We are a large country with an amazing potential for tourism. If the tourism grows, it has cascading benefits on Employment, GDP and general image building of our nation.”
Ms. Neha Bagaria,Co-Founder & CEO,JobsForHer said, "I’m happy to see the Government address the issue of training and skilling women with the introduction of Mahila Shakti Kendras aimed at empowering women. Encouraging more women to join the workforce is critical to India’s ability to benefit from the demographic dividend.We will hopefully see an increase in female participation in the workforce, with the Government increasing allocation for women’s skill development to Rs 1.84 lakh cr for FY’18. We are moving in the right direction with these Government led schemes aimed at increasing the Labour Force Participation Rate (LFPR) for women. This is vital to achieving high growth of employment and overall economic growth."
Mr. Dinesh Goel,Co-Founder & CEO,Hunarr.co.in said,"Budget 2017 seems to be positive for skill development in the country. Setting up of 100 India-International skill centers for advanced training will certainly help more Indians compete in the international market. Programs like Swayam will make it easier to ensure quality education, from the best faculties in the country, reaches a wider audience. Allocation of Rs.1.84 lakh crore in women skill development is also an extremely welcome move. A central national testing agency to conduct all higher education exams will free up a lot of resources for boards like CBSE to put more focus on the curriculum and preparing students for college and ultimately their professional life"
Ms. Debadutta Upadhyaya, Co-founder, Timesaverz.com, “A Budget less on Micro economics and more on Macro economics. Reduction of Income tax rate from 10% to 5% for individuals in income bracket 2.5 lacs to 5 lacs is an incentive for honest tax paying individuals. Compensated with surcharge of 10% on Individuals for whose annual income is Rs.50 lacs to 1 crore - Super rich definition has been widened. 25% corporate tax rate for MSME's with 50 crore turnover, - Indian Companies to benefit. Not much for Big players. Government to cut or eliminate excise duty on manufacturing of micro ATMs, finger-print readers, biometric cards and PIN cards and further, import duty may also be reduced on components used in the manufacturing - Good move which would pave way for E commerce start ups to explore and expend less on these machines to go DIGITAL"
Mr. Sanjay Shroff, Managing Director & Founder, Styletag.com said, "The budget has an eye on fiscal prudence . The boosts towards infra spends and railway safety will show results in times to come. The focus on agricultural and rural development is welcome. Beginnings towards rationalization of taxes both for corporate and individual incomes is a step in the right direction. This will help both the common man which falls under the middle income group and the smaller companies.The move towards cleaning up political funding is very welcome. For us personally, from an e-commerce industry point of view, the demonetization and the thrust on digital economy is very promising. It will open up further opportunities and a wider market for us.The ceiling of 3 lakhs on cash transactions will also go a long way in ensuring better compliance and shift towards the digital economy."
Mr.Ashu Kajekar, CEO, 7EDGE Private Limited said, “On the face of it, this budget is very common-man friendly. Announcements like the doing away with taxes and duties on sale of POS systems and mPOS systems definitely shows the commitment of the government to move towards a cashless economy. Am intent to connect the country with high-speed internet is definitely a step in the right direction that will help everyone connected to the internet. It will also create a new generation of internet users. Also, the Government's commitment towards shifting to a digital economy is amply evident from the FM's speech. And the setting up of 'Computer emergency response team' to counter cyber security in the financial sector will further strengthen the ongoing process (of digitalization). Finally, we hope that the robust plan presented in the budget will firmly propel the economy onto the much needed growth curve.”
Sunil Mishra, Chief Strategy Officer, PropTiger.com says, “This budget has been cautious albeit balanced for the real estate sector. One of the standouts for the real estate sector was definitely the affordable housing segment being granted infrastructure status. Housing for All by 2022, is not just a dream but a necessity for a country like India that’s urbanising at a rapid pace. A one year tax break for unsold inventory that has received the CC, will bring some relief to developers. The move to abolish FIPB, indicates further liberalisation of the FDI policy, something that the finance crunched sector would welcome. Long-term capitals gains tax benefit which could be availed after three years, can now be availed after two years, which would please investors and home buyers alike.”
Ananth Narayanan, CEO, Myntra & Jabong, said, “Budget 2017 is focused on bringing growth back to the economy post demonetisation. While there is no specific focus on the ecommerce sector, the overall thrust on the digital economy will enable the industry to flourish. The move to abolish the FIPB will help fasten FDI investments in the country. In addition, the focus on infrastructure and railways will enable the ecommerce industry to grow and expand its reach to all corners of the country. The allocation of a large budget for high speed broadband will enhance connectivity for the citizens and lead to an increase in ecommerce and digital payments. Measures to boost consumer spending is a welcome move. Overall the budget is largely positive; some more clarity on the roll out of GST would have been helpful.”
Bhavish Aggarwal, Co-Founder and CEO, Ola , said, "The budget from the Hon'ble Finance Minister is progressive and forward looking with a clear focus on Digital India and Skilling. These are welcome moves in the interest of India's unique and growing needs. Ola is already working closely with the Government on skilling India through various strategic partnerships. The Finance Minister’s announcement to skill 1 crore youth under PMKVY in three year's time, is a shot in the arm to large local businesses like ours, to come forward and help realize this goal. Further, the Finance Minster's commitment to building long term digital infrastructure and the cashless ecosystem for the country will also help accelerate quality of services and innovation at large."
Capillary Technologies Co-Founder and CEO Mr. Aneesh Reddy, said,”As a retail and technology centric startup, we were hopeful around 3-4 high impact areas revolving around digitization measures, GST, corporate and individual taxation laws and differential duties on certain products. It was heartening to hear about the Digital theme focused measures revolving around digital payments through BHIM app and Aadhar based payment initiatives.Besides, it’s great to see the extension of tax breaks for startups from 5 years to 7 years. This will help startups. The Capital Structure of startups undergo significant changes each time they raise money. More than 51% change in capital structure meant that startups ended up losing the benefit of carry forward losses of the initial years.”
Mr. Aakash Chaudhry, Director, Aakash Educational Services Pvt. Ltd. said, “The proposals stated by the government in the union budget will definitely lead to a paradigm shift in the education sector. It will give an impetus to quality education and global exposure. The decision to set up two new AIIMS in Jharkhand and Gujarat will open options galore for medical aspirants, thereby giving more quality medical professionals to our country. Increase in the number of post graduate seats for medical sciences is a welcome move and will greatly benefit the students aiming at higher studies and research. Further, the government’s effort to set up National Testing Service (NTS) to bring greater professionalism in conducting all higher education entrance examinations is also laudable. Overall, the budget has been quite constructive and we are looking forward to a better and significant education for students across the country.”
Vishal Bali, Chairman & Co-founder, Medwell Ventures said, “The much awaited Union Budget 2017-18 on the back of demonetisation has a balanced approach to the healthcare sector. A 27% increase in outlay for health care is a positive move by the finance minister but still misses the 2% of GDP healthcare spend by the Govt.The reduction in the cost of life-saving drugs and widening the availability of essential drugs is also in the right direction. The announcement of 5000 new PG seats in medicine should have been backed by significant reforms and policy change in medical education.The budget is once again silent on giving boost to health care infrastructure. Like low cost housing, healthcare should have been given infrastructure status.This budget is at best incremental for the healthcare sector and once again misses the much needed reformist attention.”
Heena Akhtar, Founder, TripXOXO, said “The launch of Incredible India 2 campaign across the world will be a welcome move. This will give a huge boost of the tourism sector including additional job opportunities across segments. Great emphasis being on the development of infrastructure will benefit the industry in the long run. Tourism industry in India has a huge potential and we look forward to better growths and higher returns. “
Anshul Mittal, Co-Founder, Konsult said, “Government’s initiative of ensuring the availability of specialised doctors is a commendable initiative. Our country needs quality healthcare services and by having more Post graduate doctors will benefit people and will help create a healthy nation. Also, the reduction of tax slab for companies in MSME sector with a turnover up to 50 CR is a welcomed initiative of the Government. This will help smaller companies focus on their growth."
Mr. Mayank Bhangadia, CEO and Cofounder Roposo said,"The government's move to enable startups, incorporated after 31 March 2016, avail of a three-year tax holiday in their first seven years is quite commendable. We also welcome the new relaxations provided in terms of carrying forward the losses. The government's efforts to digitise India and promote digital payments should go a long way in boosting the country's economic growth. However, the 5% corporate tax reduction is not relevant to most startups that have not yet begun generating as much revenue. Government should now start thinking about how to reduce startups' real cost in the early years. In my opinion, income tax slabs should be made completely flat. Tax rates should not increase with increasing income."
Viren Batra, Co-founder , Nirvana Excursions said, " This budget good for start up sector as companies will be taxed for 2 out of 7 years. Tax rate on SME and MSME has reduced up to 50 crs which will make small companies more competitive as compared to Corporate companies. Reduced tax burden up to 5 lakhs income will have people more disposable income and on the basis of this we expect travel industry to maintain a positive growth..Inbound tourism has been given big boost with creation of special tourism zones."
Mr. Vikram Gupta, Founder and Managing Partner, IvyCap Ventures said, “The Budget didn’t have many sops for startups other than the MAT extension of period of carry forward from 10 years to 15 years, the challenge still remains in terms of actual cash flow for startups. The main positive aspect for startups and SMEs for companies with less that Rs.50 crore of turnover is that tax rate has been reduced from 30 to 25% which should come as a big relief for startups. Most of the startups we invest in have less than 50cr revenues. Secondly, the target of about 2500 crores of digital transactions over the next 1 year facilitated through BHIM, UPI usage should be an interesting area to look at. Taxation relief for digital payment equipment manufacturers will also encourage more hardware players in the segment. The fact that cash transactions of over Rs.3 lakhs are not permitted and the cash expenses allowance is reduced to Rs.10k should benefits the online payment companies like FTCash. Some clarifications with respect to Section 56, 68 and 115 of the Income Tax are still required and are yet to be seen in the fine print of the Budget.”
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