India’s Apex It Industry Body Nasscom Has Batted For Tweaks in Safe Harbour Rules and Widing The Scope for Utilization of Sez Reinvestment Reserves in its Budget Wishlist, with a center Ch Fund to Bolster Startup Ecosystem in India.

Creation of a grant framework for the deeptech ecosystem, and making the time of payment of tax on Employee Stock Option Plan Available to Employees of All DPITPSADED ALLS Ectations of the industry.

The Union Budget for Financial Year 2025-26 is scheduled to be presented in parloment by finance minister nirmala sitharan on February 1, 2025.

For the $ 250 Billion Export-Led Indian It Industry, The Budget Comes AMID Continued Global Macro Headwinds, Geopolitical Risks, and Growing Unease About Possibility of Sudden Policy and Tarifden Here President Donald Trump has promised to script a new, glorious Chapter for America with his headline-grabbing second-term.

Issues under transfer-pricing regime, expanding the scope for utilisation of SEZ reinvestment reserve for tech companies, as well as measures to promote startup in India figure high on Nasscom’s budget expectations.

Among the key asks is also making deferment of the time of payment of tax on Employee Stock Option Plan (ESOP) Available to the Employees of More Startups.

“The Deferment – even if you look at only DPIit -Registered Startups – is actually available only available only only to about 2.5 per cent 2.5 per cent these startups.

“While the dpiit has roughly Around 1.43 Lakh Startups registered on its portal, of which 3,600 odd are certified by the inter-ministerial board, and on , Vice President and Head of Public Policy at Nasscom Told pti.

Given that Employee is required to pay full tax and there is only a deferment of the time of payment, the benefits should be available to all dpiit records IMB Certificate Under It Act , According to Aggarwal.

“In fact, there is a merit in going beyond,” He said.

Along with making the deferment available for all dpiit recognized startups, safeguards can be added e offered only to Indian Resident Taxpayers.

“Esop Schemes should be uniform for all Employees so that you don’t create some scheme which is uniquely tailored for certain employees,” He said.

Nasscom is also batting for measures to strengthen availability of ‘Patient Capital’ (long-term capital) for Deeptech Startups in India.

According to the industry body, the government should create a dedicated Deeptech Fund (in the form of fund-of-fords) Structured with Flexibility for Longer Gestation (10 years with ex-ex-rains).

The fund’s structure may increase provisions for matching capital to encourage green investment in the sector.

This was also proposed in draft National Deeptech Startup (NDTSP) 2023.

Another Ask Pertains to Creation of a Grant Framework for the Deeptech EcoSystem.

“A Common Grant Framework Should Be Establed Across Government Ministries, Through a Two -Tied Funding Approach – Initial Proof of Concept Grant of at Least RS Two Crove Crove Croe TESTE COLOGIES Ested Protype Grant of Minimum Rs 3 Crore to Support Market Validation and Early Commercialization, “nasscom said as part of its budget recommendations.

Further, Specific Infrastructure Grants – In the Form of Eccess to Labs and Testing Facility for the High -Cost Areas Like Space, Semiconductor, AI, Clean Energy, Etc. Should be explred, it says.

The Industry Asserts that Since Global Capability Center (Captive Center) only provide services to their own group companies/parent companies and are normally based on a costed rul Should be available to all the gcc and the cap on turnover (UP to Rs 200 Crore) and the criterion of bearing insurance needs to be dispensed with.

“The Safe Harbor Regime Should Be Made Available for All Related Party Entities. Terms of Annual Revenues.

Therefore, abolish or significantly increase the eligibility threshold for shr, “According to nasscom.

Further, The Safe Harbor Margin Rates – Thought Reduced in 2017 Are “Still very high” and needs to be reduced. The industry is also pinning its hopes on a simpler regime and fewer categories.

So far as issues impacting the tech industry goes, nasscom have recommended that the government should expand the scient expand / Laptops, Using Cloud Infrastructure, Buying Software; Capital Investment in Building Infrastructure and Expenses Incurred on New Employees Such as Salary Cost, Training costs.