DeepTech Fund Proposal

As the Union Budget 2025 approaches, India's tech industry, led by Nasscom, is pushing for the creation of a central deeptech fund. This fund aims to support the startup ecosystem with 'patient capital', offering longer gestation periods up to 10 years. Additionally, Nasscom proposes a grant framework for deeptech startups, including significant Proof of Concept and Prototype grants.

Tweaks in Safe Harbour Rules

The tech industry is also advocating for adjustments to the safe harbour rules' threshold. Nasscom suggests widening the scope for SEZ reinvestment reserves and addressing transfer-pricing regime issues. These changes aim to provide more flexibility for tech companies operating in Special Economic Zones (SEZs).

Employee Stock Option Plan (ESOP) Deferment

Nasscom is calling for the deferment of tax payment on Employee Stock Option Plans (ESOPs) for employees of all DPIIT-recognized startups. Currently, this benefit is limited to a small percentage of startups. The proposal seeks to extend this deferment to all, with safeguards to ensure eligibility only for employees of DPIIT-registered startups and Indian resident taxpayers.