To assist India’s startups amid the COVID-19 pandemic, tax holidays for these companies have been prolonged by one yr until March 31, 2022, stated Finance Minister Nirmala Sitharaman whereas presenting the Union Price range 2021-22 on Monday.
“Tax holidays for startups prolonged by one yr, until thirty first March 2022,” stated Sitharaman within the Parliament.
The capital beneficial properties exemption given to startups was additionally prolonged by a yr extra.
“Definition of small corporations below Firms Act 2013 to be revised. Firms with paid-up capital as much as Rs. 2 crore and turnover as much as Rs. 20 crore will fall below small corporations, benefiting greater than 2 lakh corporations in compliance required,” stated Sitharaman.
“To incentivise incorporation of one-person companies, such corporations can be allowed to develop with none restriction on paid-up capital or turnover and to transform into some other kind of firm at any time,” she added.
Reacting to the bulletins made for startups through the Budget presentation right this moment, Lokendra Ranawat, Founder and CEO, WoodenStreet stated, the price range was awaited with a number of expectations and of that the majority have been met. Infrastructure and healthcare had been the primary spotlights of price range 2021 and a big funding has been allotted for the growth of the street community.
“Additionally, identical to it was predicted, Startups got significance on this price range as nicely. The tax-exempt on the income, in addition to investments, have been elevated by yet one more yr which can be useful for the startup development within the nation,” stated Ranawat.
“However, the funding in MSMEs and the moratorium on loans of as much as 2 crore will even play a vital function for the Indian corporates. Privatisation of a number of government-related sectors corresponding to ports will even add to the financial development and employment technology,” he added.
The Union Price range 2021-22 proposals relaxation on six pillars: Well being and well-being, bodily and monetary capital and infrastructure, inclusive growth for aspirational India reinvigorating human capital, innovation and R&D, minimal authorities and most governance.
Whereas presenting the Price range, Sitharaman stated, solely thrice has the Price range adopted a contraction within the financial system this time, in contrast to earlier than, the scenario is because of a worldwide pandemic Price range-2021 supplies each alternative for the financial system to seize the tempo and develop sustainably.
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