Nasscom has submitted a detailed memorandum of suggestions for the Union Budget 2025-26 (Budget) to Ministry of Finance. Following broad Budget suggestions are being offered:
International Taxation: The IT industry body has requested the Government to implement measures for giving effect to the Union Budget 2024 announcement to make safe harbour rules attractive and streamline transfer pricing assessment procedure. This will attract growth of GCCs and improve ease of doing business for the IT-BPM MNEs.
Safe Harbour Rules – Increase the threshold, reduce the rates and club the rate categories.
Advance Pricing Agreements – Reduce the time taken to conclude unilateral APAs and reduce the timelines for renewal of APAs where the facts are substantially the same.
Special Economic Zones: Enable the technology services industry to effectively utilise the income tax benefit during 11-15th year of operation in the SEZs by broadening the eligible purposes for utilisation of the Re-investment Reserve under S. 10AA.
Strengthen availability of patient capital for DeepTech Startups in India by: Setting up a central DeepTech fund,Creating a grant framework for the DeepTech ecosystem, and Allowing CSR contributions to approved funds for incubators or R&D projects in the field of science, technology, engineering and medicine.
Make the deferment of the time of payment of tax on Employee Stock Option Plan available to employees of all DPIIT recognised start-ups.
Ease of Doing Business: We have requested to implement a range of ease of doing measures to significantly boost competitiveness for IT-BPM, Ecommerce and start-ups. These measures should boost efficiency for the broader industry.