Budget Reactions from Start ups

Quote from Mr Amit Sharma, Group CEO, eExpedise.com said, “Budget2019-20 is more of wishful Budget while Start-ups has been given some relief Healthcare Sector seems neglected. A dedicated TV Channels for start-ups, relaxation on scrutiny on the valuation of share premium for both startup and investors, Relaxation of conditions for carry forward and set off of losses are some of the key points that will benefit the confidence of Start-ups. The Union Budget has identified the role of startups & MSME’s in reaching the $2.7 trillion economy goal. The Economic Survey presented also highlighted the fact that India Inc. comprises of 85 per cent startups & small firms and a few very large-scale operations. Therefore, enabling small businesses to scale quickly is the key to job creation.”

Puneet Gupta Founder and CEO of AstroTalk, a fast-growing platform for online consultation of Astrology said, “The announcement by the government of not scrutinising the startups and investors who have filed the returns has provided a major relief to the startup community.  Furthermore, it has brought comfort to tax woes of the community as returns of startups will not be subjected to any scrutiny from the Income Tax department as more than half of the startups in India have received Angel tax notices. The proposal to establish a channel under Doordarshan bouquet dedicated only to start-ups is an excellent idea by the government. There are already a few start-up shows run by private channels to make people aware of the start-up industry and its working but this will be the first channel that will be handled by start-ups itself. This will not only boost the enthusiasm of the entrepreneurs but will help budding entrepreneurs to keep an eye on the important updates from the industry and make informed decisions for their start-ups. Internet connectivity is a major challenge for startups that provides services through apps and websites. Government decision to provide internet connectivity Under Pradhan Mantri Grameen Digital Saksharata Abhiyan will help not only startups reach to masses but people of these towns to take the advantages of the services provided by it.”

Mr. Pradeep Dadha, Founder & CEO Netmeds.com says, “We welcome the government’s focus on incentivising transparency in the startup ecosystem. No scrutiny in share valuation, e-verification of funds raised by startups and no further tax scrutiny certainly improves the ease of doing business. The startups in India have been burdened by Angel Tax and regulatory bottlenecks that have finally been addressed by the Modi government by reducing tax compliance and promising a speedy review of pending cases related to startups by CBDT.

The Union Budget clearly identifies the role of startups & MSME’s in reaching the $2.7 trillion economy goal. The Economic Survey presented also highlighted the fact that India Inc. comprises 85 per cent of startups & small firms and a few very large-scale operations. Therefore, enabling small businesses to scale quickly is the key to job creation.

We commend the government’s initiative to promote entrepreneurship in the country by supporting over 300 budding entrepreneurs as a part of the Stand Up India Scheme.

The Budget’s focus on Bharat Net providing internet to every Gram Panchayat in the country will help us take our healthcare initiatives to every nook and corner, providing much-needed quality medicines & affordable healthcare services like online medicine delivery, remote doctor consultation to rural India.

The proposed TV Channel exclusively focusing on startups, will not only inspire the community but also promote entrepreneurs, ideas and stimulate growth in the economy. Skilling the youth of India in technology domains such as Artificial Intelligence, Big Data, and Robotics, is a clear indicator that the government identifies technology’s role in redefining the future of the country.

As expected the budget has further incentivized digital modes of payment and discouraging cash transaction with 2% TDS on cash withdrawals in a year from a bank account. This will further fine-tune the already existing framework that supports digital payments and fiscal transparency.

However, the cess on diesel and petrol would increase operational cost and effect delivery startups in particular and the ones that rely on efficient last-mile delivery.

In conclusion, the Union Budget 2019-2020, marks a paradigm shift in the startup industry with its landmark regulatory and tax compliance benefits. We believe that this will bring about a positive change in the sentiments, further bolster the economy and align our value system fittingly expressed by Finance Minister Nirmala Sitharaman, “Mazboot Desh Mazboot Nagrik” (Strong Nation Strong Citizens).”