We hope Budget 2019 will boost the start-up ecosystem: Srividya Kannan
Ms. Srividya Kannan, Founder Director, Avaali Solutions shares her view on the Budget 2019, with IIFL.
There is an ongoing rationalizing happening on GST rates – it would be a key requirement to bring down the GST rates across the board for start-ups.
I’m sure the start-up community is all eyes and ears to Budget 2019 – there is a lot expected to further boost the start-up ecosystem. There is an ongoing rationalizing happening on GST rates – it would be a key requirement to bring down the GST rates across the board for start-ups. Also, having policies around different classes of equities will really help founders maintain control of the company.
Again, tax sops by extending the tax holiday window further to about 7 years will support start-ups. Like the CGTMSE scheme, allocating government funds to start-ups focusing on emerging and innovative technologies will further propel innovation via this sector. Startup funds and investors should have a level playing field with other asset classes, more particularly listed companies.
In terms of personal income tax, reducing the maximum tax slab to 25% and allowing an exemption for medical expenses and transportation allowance will support the employed class. Again, in the interest of boosting the start-up sector, tax on ESOP’s should be levied at the liquidity event and not at the time of exercise.