The Internet and Mobile Association of India (IAMAI), which represents some Internet and Mobile companies operating India has called for the Indian government to do two things to foster the growth of digital entrepreneurship in India: 1. Income Tax holiday for Indian digital companies: The IAMAI points out that the Telecom sector was given a tax holiday for 10 years in a block of 15 years, and that the software and ITeS industry received an income-tax holiday under section 10A/ 10B/ 10AA of the Income-tax Act, 1961 ('IT Act'). The IAMAI wants this to be extended to digital companies. 2. Deduction equal to 150% of salary to new employees for the digital industry: "Section 80JJAA of the IT Act, inter alia, provides that an Indian company operating an industrial undertaking shall be allowed a deduction of an amount equal to 30% of additional wages paid to the new regular workmen employed by the taxpayer during a year for three years, including the year in which such employment is provided. It is recommended that a deduction of an amount equal to 150% of salary paid to new employees be allowed to companies operating in the digital industry. Further, there should be no minimum employment threshold limits that should be set as a pre-condition for claiming the said incentive. The above incentive would go a long way in employment generation and fostering entrepreneurship in digital business." 3. Preferential tax treatment for investors in the digital sector: ""There are limited alternative sources of finance available to small and new…
