Tech business pushes for deeptech funding and protected harbour reforms and extra, ETCFO
Because the Union Funds 2025 approaches, the tech business is voicing its calls for for important adjustments to assist innovation and development. The Nationwide Affiliation of Software program and Service Corporations (Nasscom), India’s apex IT business physique, has put forth a wishlist that features the creation of a central deeptech fund and tweaks to the protected harbour guidelines’ threshold.
Deeptech fund proposal
Nasscom is advocating for the institution of a devoted deeptech fund to bolster the startup ecosystem in India. This fund, envisioned as a fund-of-funds, could be structured with flexibility for longer gestation intervals, probably as much as 10 years with extensions. The goal is to supply “affected person capital” to deeptech startups, encouraging better enterprise funding within the sector. Nasscom additionally proposes a grant framework for the deeptech ecosystem, together with an preliminary Proof of Idea grant of at the very least Rs 2 crore and a examined Prototype grant of a minimal of Rs 3 crore.
Tweaks in protected harbour guidelines
The tech business can be calling for changes to the protected harbour guidelines’ threshold. Nasscom suggests widening the scope for the utilization of SEZ reinvestment reserves and addressing points below the transfer-pricing regime. These adjustments are anticipated to supply extra flexibility and assist for tech corporations working in Particular Financial Zones (SEZs).
Worker Inventory Possibility Plan (ESOP) deferment
One other key demand from Nasscom is the deferment of the time of fee of tax on Worker Inventory Possibility Plans (ESOPs) for workers of all DPIIT-recognized startups. At present, this profit is obtainable to solely about 2.5% of those startups. Nasscom argues that the deferment ought to be prolonged to all DPIIT-recognized startups, with safeguards to make sure that eligible ESOPs can be found solely to workers of DPIIT-registered startups and provided solely to Indian resident taxpayers.
The Union Funds for the monetary yr 2025-26, scheduled to be offered by Finance Minister Nirmala Sitharaman on February 1, 2025.
