1. Angel tax/startup taxation: There was a high hope amongst the startup community to ease their pressure of raising funds from angel investors. It is a challenging situation to approach the investors. Relieving them of an additional burden of 33% on angel tax investment was expected this time around. It would have meant that when a startup required 5 crores, it doesn’t have to plan to raise additional 1.5 crores (to realize the actual amount needed)
2. Service tax: The additional cess levy on service tax will only restrict the deployment of funds by startups more effectively. Complicated tax structure continues to press the startup community demanding more value for money and fewer complications
3. Digital India:e-commerce companies have been relaying their fortunes on the Digital India growth. However, the budget 2016 lacks any further clarity or direction on the subject. There is no clear ultimatum on what is likely to be achieved in the next few years on the digital infrastructure front in India, except empowering the farmer’s community with internet
4. GST:The implementation of GST has been hanging in the balance. It is only expected to simplify the tax structure, and give India a much-required makeover of a business-friendly destination. By doing away with multiplicity of taxes, and a uniform structure, GST implementation will only help in cutting business costs and generate more revenues
