The startup sector has its own set of recommendations for the 2020 Union Budget on top of the list is the change in taxation of ESOPs or employee stock ownership plan to the time of selling the shares instead of when they are issued.
The startup sector is asking the government to harmonise tax rates between unlisted and listed shares. It also wants the angel tax issue to be put to rest and that the government remove the 200 percent penalty for non-compliance with certain conditions for exemptions for angel tax.
Another wish for startups is faster goods and services tax (GST) and tax deducted at source (TDS) refunds to ease the cash crunch in the startup sector.
The IT sector also has its own set of recommendations and is asking for a low tax jurisdiction to attract investments. One of the key demands is that the government extend the corporate tax rate of 15 percent to newly established companies in the special economic zones (SEZs) and also extend the sunset clause for existing companies for another five years as well as several other such tax concessions.
In summation, startups and the IT sector are asking for ease of doing business and a friendlier tax regime.