As Indian retailers are eagerly waiting for the Union Budget for 2016-17, one of country eCommerce giants along with the audit and consultancy firm, PwC has together urged the government to give relaxation on carry forward and settle down tax losses under the section 79 of Income-tax. Explaining this further, both companies believe that this will surely lower down the risk for promoters and investors in any investor funded digital business in the country.
As per Snapdeal’s CEO, Kunal Bahl, it is imperative that regulation, policy and business evolve in sync and recalibrate often so that the rules of engagement are mutually clear, contemporary and relevant.
This lies both with the government and the industry. The eCommerce gaint plans to regularly come up with such rollouts with PwC focusing on policy matters relevant for digital businesses.
The above mentioned plea of Section 79 of the Income-tax Act has been raised by retail business many a times as they are not able to carry forward and settle their business losses that they incurred in the starting phase of their operations.
As per Sandeep Ladda of PwC India, this relaxation will help present real-time issues the industry is facing and also aid in tackling them in an effective manner. With such affirmative investment spree in the modern startups, the share holding patterns will change too.