BENGALURU: The IAMAI has approached the government to incentivize startups and domestic venture capital through fiscal interventions in order to encourage and boost investment, seeing that it forms a pre-budget expectation, according to indiatimes.com.

Here, the suggestion made by the IAMAI (The Internet and Mobile Association of India) states that there should be tax breaks and incentives for individuals supporting startups with capital. However, the criteria to qualify as an angel fund, looking to invest domestically are stringent and need to be eased. The association also suggested that Facebook, LinkedIn, Google and Microsoft which are its members, shall waive off service tax for first three years of a startup’s operation only if its paying its taxes on time.

Apart from multinational companies, IAMAI also counts a host of online businesses as its members, including Freecharge, Hike, Quikr and Snapdeal. Further, it also talked about the different types of financial startups providing services such as prepaid instruments and wallets to be provided with more clarity on the rules and policy front, on the peer to peer leading issue by the government, so that they will be in a position to reach a wider customer base.

Along with this, the IAMAI has also said that digital payments startups such as those providing services such as prepaid instruments, wallets and others use KYC (Know Your Customer) mechanisms through AADHAR, so that they are able to build new services, which in turn help to bring in more people under financial services. 

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