Deloitte Discussion: What can the TMT Sector Expect from the Budget 2021
India is one of the fastest-growing digital markets in the world, and the pandemic has propelled the sector forward. With the upcoming Union Budget of 2021, it is expected that the government may implement favourable policies to support Digital India. This sector requires investments to improve provisions, policies, and infrastructure. Budget 2021 expectations from TMT are as stated below- Technology Sector Here are the key budget expectations for the technology sector Direct Tax ● Digital Tax - The Equalisation Levy (EQL) provisions, introduced on 1st April 2020, have various ambiguities including the definition of ‘digital facility’ and applicability of intra-group services. It is hoped that the government will provide clarifications for these ambiguities. Significant Economic Provisions (SEP) will be applicable from 1st April 2021. It is expected that there will be an overlap in both provisions. The government should clarify the expected interplay between the p