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Enabling long term work from home: MeitY set up Inter-Ministerial Working Group for IT/ITES Industry

June 11, 2020

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Dear Members,

Based on NASSCOM’s suggestion, an Inter-Ministerial Working Group  has been setup by MeitY under the Chairmanship of Mr. Ajay Sawhney, Secretary, MeitY to look into the requirements of the IT-ITeS sector to enable a long term blended work model with enablement for WFH on a permanent basis. The  working group is chaired by Secretary, MeitY and has Joint Secretary level representation from Department of Telecommunications (DoT),  Ministry of Labour & Employment (MoLE), Ministry of Corporate Affairs (MCA), Department of Revenue (DoR) Ministry of Finance, Department of Commerce (DoC), Ministry of Housing & Urban Affairs (MoHUA) and Software Industry Promotion Division, MeitY.

The first meeting was the working group was held today. NASSCOM presented industry’s recommendations as per the representation made to the Government on May 19, 2020 (available here). The need to provide policy and regulatory certainty on a priority basis was stressed by NASSCOM. Within the list of issues, we requested the Government to prioritise:

  1. Making work from home relaxation under the OSP regime permanent,
  2. Clarification around availability of SEZ tax exemption under Income Tax Act if employees work from home; and clarification on permission to adopt WFH on a permanent basis in SEZs and STPIs.

In addition, NASSCOM highlighted the need to make appropriate changes in taxation and labour laws or issue relevant clarifications to support remote working models and promote ease of doing business.

The Working Group has noted the concerns and suggestions put forward by NASSCOM and as a next step, each of the department and ministries have been requested by MeitY to submit their plan of action to MeitY to address requirements of the IT-BPM industry related to WFH.

We shall keep you updated on further developments.

 


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