Startups and venture capital firms are urging the government to simplify tax regulations and enhance domestic capital availability in the upcoming Budget. Siddarth Pai from 3one4 Capital emphasizes the need for tax parity between foreign and domestic funds to attract foreign investors to Indian alternative investment funds (AIFs). To bolster domestic investment, Padmaja Ruparel calls for encouraging banks and pension funds to invest through fund of funds schemes. Anirudh A Damani advocates for a sovereign-backed fund anchored by SIDBI. Additionally, startups seek relaxation in employee stock ownership plan (Esop) taxation and a tiered merchant discount rate for UPI transactions.