Budget 2016-17: Start-ups expect smoothening of administrative procedures around refund claims, valuations

New Delhi, Feb 15 (KNN) With the Budget for FY 2016-17 round the corner, the  industry is certainly curious to discern as to whether their wish list and expectation from the budget would be fulfilled or not.

The expectations amid the industries are running high as Narendra Modi Government is scheduled to unveil its second full-fledged budget in Parliament on February 29.

KNN was in conversation with Rohit Gadia, Founder and CEO, Capital Via Global Research Ltd to get a brief of his budget expectations from the Modi government.

“There are huge expectations from the government, as already the international markets are keeping Indian economy on edge. Thus all eyes are set on the budget which can bring some shine back on the Dalal Street,” said Gadia.

He said that one of the major expectations of the industry is smoothening of administrative procedures around refund claims and valuations which are plagued with inordinate delays in assessments coupled with huge revenue deposits which result in uncertainty and blockage of working capital for companies.

“The Government should focus on these aspects,” Gadia elaborated, further stating, “This will give boost to start-up India initiative as due to delays in these procedures many start-ups die an untimely death. Reduction in Corporate Tax is expected to promote the business environment as it is unfavourable when compared to other emerging economies”.

The founder also expects a rise in exemption limit of Rs 2.5 lakh to Rs. 3 lakh. He was of the belief that the government is looking for innovative approaches for creating more incentives in investing in long term equity markets.

“We believe the consequent revival in economic activity will further bolster India’s position as one of the fastest growing economies in the world,” he said.

In spite of having immense hopes from the budget, Gadia believes that certain demands such as lowering of securities transaction tax (STT) or removal of dividend distribution tax might be overlooked.

“Strained tax receipts given the general economic slowdown, implementation of the seventh pay commission, need to boost the rural economy after two years of subnormal monsoon and necessity of infrastructure and social investments place increased demands on the expenditure side” said the entrepreneur.

Further, Gadia expressed that the Union Budget 2016-17 has an important task to keep up the positive economic outlook of India by bringing in major indirect tax reforms and addressing business concerns.

“The passing of Constitutional Amendment Bill for GST in this budget session, will not only help the Government to set up a positive environment but will also be a giant step towards reinforcing the perception about India as the next investment destination,” he said. (KNN Bureau)