Talks must precede tech regulations
Nasscom has written to Arun Jaitley requesting relief for angel tax provisions imposed under section 56 of the Income Tax Act
- Published 11.01.19, 1:21 AM
- Updated 11.01.19, 1:21 AM
- a min read
Consultation before adaptation is crucial before the implementation of complex technology focussed regulations according to information technology body Nasscom. A sandbox approach that allows testing the impact of policies before its implementation should be considered, it added.
“Tech regulation in important, but it has to be done right. It has to become consultative. It has to bring in the industry and academia not after something is announced but at early stages of discussion to fully understand what is the problem that you are trying to solve,” Nasscom president Debjani Ghosh said on the sidelines of Nasscom International SME Conclave 2019 in partnership with The Telegraph.
“My one request to all regulators would be if you are trying to find the solution to prevent the misuse or funnelling of money through investments, it’s a good cause, but don’t figure out how without consulting the industry,” Ghosh said.
Nasscom, along with Tie Global, Indian Private Equity Venture Capital Association and Indian Angel Network, has written to finance minister Arun Jaitley on January 7, requesting relief for angel tax provisions imposed under section 56 of the Income Tax Act.
It penalises angel investors when premium is paid or discount given to the sale and purchase of shares of unlisted companies.
She added the country could benefit from a sandbox approach where policymakers industry and academia can figure out and create a framework.
The sandbox approach allows companies to test products in a closed environment, a particular geography or among a set of users, before they are allowed to roll out commercially.
Bengal commerce, industries, finance and IT minister Amit Mitra urged Nasscom to develop a blueprint for MSMEs in the state that helps them to adopt emerging technologies, bring down their cost of doing business and improve marketing.
He also urged Webel and Nasscom to work together and find out application areas for artificial intelligence.