Services Budget 2017: Key expectations from Finance Minister Arun Jaitley for IT sector

The Information Technology (IT) sectors have grown multi-fold in revenue terms over a decade and continues to be the largest private sector employer in the organised sector.

Written by: Zeeshan Shaikh

Updated: January 30, 2017, 12:58 PM IST

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https://www.india.com/news/india/services-budget-2017-key-expectations-from-finance-minister-arun-jaitley-for-it-sector-1785447/ Copy

Union Budget 2017

New Delhi, January 26: Last year was a challenging year for both Indian as well as global economy and after facing several hurdles India emerged as the fastest growing economy in the world – even amid persisting uncertainty. With one week left for the Union Budget 2017, the market has a lot of expectations from the government, especially from Finance Minister Arun Jaitley who will table the Budget on Wednesday. The Information Technology (IT) sectors have grown multi-fold in revenue terms over a decade and continues to be the largest private sector employer in the organised sector, with an aggregate revenue of USD 143 billion.

Key expectations from Union Budget 2017-18 for IT sector are as follows:

• The government must announce further measures to encourage digital payments in line with government’s intention for the cashless economy.
• The government must continue its focus on ‘ease of doing business’ and thrust on development of technological infrastructure.
• The IT sector professionals are looking for a single window mechanism for MSMEs that serves as one-stop shop service for all business related compliances.
• Promoting digital literacy, improved connectivity and access to technology must be an initiative in the Budget 2017.
• The government must introduce a single window system for MSMEs that serves as one-stop shop service for all business related compliances, with in-built provisions for time bound and deemed clearances.
• The government must continue to support Start-ups under the Start-up India initiative.
• The Finance Ministry must roll out a roadmap for reduction of the rate of tax from 30 per cent to 25 per cent.
• The IT sector had reportedly demanded to restate the rate of depreciation on computer and computer software to 60 per cent from 40 per cent.
• The government must clarify the transfer of funds from the head office located in India to branch office located outside India and vice versa for meeting day to day expenses should not be subject to service tax.