Post Budget Memorandum 2024-25

Terms of use

Terms of Use

The use of this site and the content contained therein is governed by the Terms of Use. When you use this site you acknowledge that you have read the Terms of Use and that you accept and will be bound by the terms hereof and such terms as may be modified from time to time.

All text, graphics, audio, design and other works on the site are the copyrighted works of nasscom unless otherwise indicated. All rights reserved.
Content on the site is for personal use only and may be downloaded provided the material is kept intact and there is no violation of the copyrights, trademarks, and other proprietary rights. Any alteration of the material or use of the material contained in the site for any other purpose is a violation of the copyright of nasscom and / or its affiliates or associates or of its third-party information providers. This material cannot be copied, reproduced, republished, uploaded, posted, transmitted or distributed in any way for non-personal use without obtaining the prior permission from nasscom.
The nasscom Members login is for the reference of only registered nasscom Member Companies.
nasscom reserves the right to modify the terms of use of any service without any liability. nasscom reserves the right to take all measures necessary to prevent access to any service or termination of service if the terms of use are not complied with or are contravened or there is any violation of copyright, trademark or other proprietary right.
From time to time nasscom may supplement these terms of use with additional terms pertaining to specific content (additional terms). Such additional terms are hereby incorporated by reference into these Terms of Use.

Disclaimer

The Company information provided on the nasscom web site is as per data collected by companies. nasscom is not liable on the authenticity of such data.
nasscom has exercised due diligence in checking the correctness and authenticity of the information contained in the site, but nasscom or any of its affiliates or associates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this site. The information from or through this site is provided "as is" and all warranties express or implied of any kind, regarding any matter pertaining to any service or channel, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and non-infringement are disclaimed. nasscom and its affiliates and associates shall not be liable, at any time, for any failure of performance, error, omission, interruption, deletion, defect, delay in operation or transmission, computer virus, communications line failure, theft or destruction or unauthorised access to, alteration of, or use of information contained on the site. No representations, warranties or guarantees whatsoever are made as to the accuracy, adequacy, reliability, completeness, suitability or applicability of the information to a particular situation.
nasscom or its affiliates or associates or its employees do not provide any judgments or warranty in respect of the authenticity or correctness of the content of other services or sites to which links are provided. A link to another service or site is not an endorsement of any products or services on such site or the site.
The content provided is for information purposes alone and does not substitute for specific advice whether investment, legal, taxation or otherwise. nasscom disclaims all liability for damages caused by use of content on the site.
All responsibility and liability for any damages caused by downloading of any data is disclaimed.
nasscom reserves the right to modify, suspend / cancel, or discontinue any or all sections, or service at any time without notice.

For any grievances under the Information Technology Act 2000, please get in touch with Grievance Officer, Mr. Anirban Mandal at data-query@nasscom.in.

New

See all

No notification found.

Post Budget Memorandum 2024-25

Tejasvi

@tejasvi

August 7, 2024

Public Policy

Nasscom welcomes a growth-oriented Union Budget 2024-25 (Budget 2024) that lays a robust foundation for India's long-term growth, with a clear focus on job creation and skill development. It is particularly encouraging to see the continued emphasis on technology as a fundamental driver of progress across various sectors. From fostering start-ups and attracting investors to advancing manufacturing, agriculture, solar power, and the space economy, it seeks to leverage both traditional and contemporary avenues for sustainable progress.

The announcements on abolition of angel tax as well as 2% equalisation levy, reduction in rate of Tax Deduction at Source (TDS) from 1% to 0.1% for ecommerce operators and allowing credit of Tax Collection at Source (TCS) against TDS on salary will go a long way in facilitating ease of doing business in India and will provide certainty to the taxpayers.

Further, the announcement to expand the scope of safe harbour rules and the proposal to undertake comprehensive review of income tax law are a welcome step. This is an important announcement in line with nasscom’s recommendations. Once done, this would make India’s transfer pricing regime more attractive and competitive, boost Information Technology (IT) exports and ease business for Global Capability Centres (GCCs) and the IT services industry. Nasscom is keen to engage proactively with the government on this important initiative. We believe that industry input will be crucial to ensuring that the revised rules and regulations effectively address the needs and challenges of the dynamic IT sector. To this end, we are currently working on a detailed whitepaper that aims to set the overall context of the growth of the GCC industry in India and provide recommendations on changes that can be made in the current safe harbour regime, extending it to TP assessments, to address the challenges faced by the GCC industry around prolonged transfer pricing disputes.

Over the last month, we have consulted the industry on the proposals announced in the Budget 2024. Based on the feedback from Industry, we have submitted a detailed post budget memorandum to Ministry of Finance highlighting our concerns and recommendations to strengthen the Budget proposals. Our focus is with respect to the possible unintended outcomes of some of the proposals and implementation related concerns. As part of our suggestion, we have requested the government to abolish S. 56(2)(viib) of Income Tax Act, 1961 (IT Act) from retrospective effect (i.e., w.e.f AY 2013-14), align the language of proposed sub-clause (f) of S. 2(22) with other sub-clauses of S. 2(22) by including a reference to accumulated profits, proposal to include unlisted bonds and unlisted debentures proposed in Finance Bill, 2024 as an amendment to S. 50AA of IT Act should be omitted, introduce an enabling provision under the IT Act to provide that any EL paid in excess of the actual EL liability can be adjusted against income tax liability, if any, for that year, amongst others

The detailed document is attached for your reference.

In case of any feedback, please write to tejasvi@nasscom.in

Disclaimer

That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.

Download Attachment

Tejasvi

Nasscom Public Policy Highlights | ...

Sudipto