HYDERABAD: The IT industry on Wednesday welcomed the Union Budget for the year 2023-24, describing it as a well-balanced one that placed a strong emphasis on capital formation and increased middle-class tax refunds. Experts said that the budget for 2023 included an exceptional people-focused agenda for addressing global challenges and fostering the economy.
According to T-Hub, initiatives like National Data Governance Policy, Skill India Digital Platform, and upskilling policies would address the industry-academia widening gap and nurture entrepreneurship at the grassroots level. The industry expressed happiness over the allocation of Rs 283.5 crore for the Startup India Seed Fund Scheme and Rs 1,000 crore for the Fund of Funds for Start-ups.
“The government has taken a series of steps to promote startups in the country. The announcement of special incentives and Credit Guarantee Scheme for Startups (CGSS) will boost capital at various stages of the business cycle. These initiatives will serve as a successful catalyst for the country’s economic growth,” said Mahankali Srinivas Rao (MSR), CEO, T-Hub.
“If we speak from the individual employee’s standpoint, the decision to raise the Income Tax slab from Rs 5 lakh to Rs 7 lakh is an excellent initiative. On a practical level, the tax holiday extension and permitting the carry forward of losses from 7 to 10 years on change of shareholding structure is a welcome initiative,” Vijay Yalamanchili, founder & CEO, Keka.
On the other hand, a few experts said that the new tax regime was just an eyewash. “There are around 8 crore tax payers in the country and many of them fall above Rs 7 lakh tax slab. This would not help the majority of employees, particularly in the IT sector,” said Kiran Chandra, Forum of IT Professionals.