Here's what a startup founder wants to see in Budget 2016

The current government has placed immense faith and hope in Indian startups and digital ventures. The announcement of a $1.5 billion start-up fund during 'Startup India 2016' is definitely a boost, though we would like to see how these funds are channelized towards us, and would want a clear and quick way to access them, with minimal government or bureaucratic intervention.

A sure way to help early-stage startups pick up growth would be to increase existing tax exemptions - currently a service tax exemption exists for commissions earned up to 10 lakh a year, this exemption should be extended to commissions earned up to 25 lakh.

Advancement in communication technology and penetration of the internet into Tier 2 and Tier 3 cities will bring in the next wave of digital consumers, and possibly, entrepreneurs, so we would be on the lookout for the budget to concentrate on these infrastructural roadblocks.

As the government is pinning its hopes on the new wave of startups and digital companies to boost employment, a good initiative would be to introduce tax incentives for startup employees, to further encourage the Indian youth to join startups. It’s a known fact that Indian e-commerce market is gaining momentum at a high speed. Since India has an aspiring and vibrant customer base, it is a place that every brand should be present in.

The upcoming budget should look aim at simplifying the tax structure for the e-commerce sector. The government should also look at zeroing in some ground rules in order to boost the e-Commerce sector. The budget should also look to roll out the implementation of GST by 2016.

E-commerce companies expect ample Foreign Direct Investments, which will ensure huge growth, faster building of logistics & better funding option. As promised in the Union Budget of 2015, implementation of GST from April 2016 will help ecommerce companies rationalize supply chains by addressing the taxation issues.

(This article is authored by Ankita Tandon, Chief Operating Officer, CouponDunia)

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