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Post Budget Memorandum 2023-24
Post Budget Memorandum 2023-24

February 28, 2023

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NASSCOM welcomes the growth-oriented Union Budget 2023-24 (Budget 2023) presented by the finance minister. The proposals lay a strong thrust on leveraging technology as an enabler, by announcing a range of initiatives that could make India a digital nation. We are also encouraged to see the announcement relating to creation of 5G labs. This will help in opening newer avenues and opportunities, scaling up new business models and employment prospects.

Over the last month, we have consulted the industry on the proposals announced in the Budget 2023. 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. We have also highlighted some of our pre budget suggestions related to ease of doing business for government’s consideration.

As part of our suggestion, we have requested the government to provide clarity on S.194R (relating to tax deduction at source on perquisites/ benefits) and imposition of penalty and prosecution in case of non-compliance, suggestions to minimise the negative impact of S.56(2)(viib) on startups, clarificationthat exemption under S.10AA will not be available only in respect of such income where the export proceeds are not brought/ received in India within the prescribed time limit, withdraw the proposal to increase rate of tax collection at source to 20% without any threshold, clarification on the proposed penalty provisions for ecommerce operators under GST, amongst others.

The detailed document is attached for your reference. 

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


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20230228-postbudgetmemo-nasscomsubm.pdf

Tejasvi

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