Last Update: February 02, 2023, 10:56 IST
Piyush Goyal said the budget is also focused on promoting startups in the agriculture sector (PTI/File)
Goyal said that the government has been consistently supporting the startup ecosystem and there has been significant growth in the startup sector in the country since the launch of the Startup India initiative.
Commerce and Industry Minister Piyush Goyal has said that the measures announced in the budget such as extending the period for inclusion of eligible budding entrepreneurs for providing tax incentives will go a long way in further strengthening the startup ecosystem of the country.
The government on Wednesday proposed to extend the incorporation period of eligible startups by another year till March 31, 2024, to provide tax incentives to encourage budding entrepreneurs.
Finance Minister nirmala sitharaman It has also proposed to ease norms for startups by increasing the benefit of carry forward of losses to 10 years.
Goyal said that the government has been continuously supporting the startup ecosystem and startups since their launch India Initiatives, there has been a significant growth in the startup sector in the country.
“So I believe this (Budget) will definitely give a lot of support and help to the startup ecosystem so that it flourishes in the years to come,” the minister told PTI.
He said the budget also focused on promoting startups in the agriculture sector and creating ‘agri-entrepreneurs’ and encouraging them to come up with better ideas for cold storage, food processing and value addition in the agriculture sector.
Sitharaman in her budget speech said: “I propose to extend the date of incorporation for income tax benefit for startups from March 31, 2023 to March 31, 2024. I propose to provide the benefit of carry forward of loss on change in shareholding.” I propose to do.” From seven year old incorporation to ten year old startup”.
To encourage agri-startups by young entrepreneurs in rural areas, the Finance Minister said that the government will set up an Agriculture Accelerator Fund (AAF).
A digital public infrastructure for agriculture will also be created to enable inclusive, farmer-centric solutions.
In last year’s budget, the government had extended it till March 31 this year.
Eligible startups established before March 31, 2023 have been provided tax incentives for three consecutive years out of ten years from incorporation.
Startups incorporated on or after 1 April 2016 can apply for income tax exemption.
Recognized Startups that are granted Inter-Ministerial Board Certificate are exempted from Income Tax for three consecutive years out of 10 years since incorporation.
The government has taken several steps to promote startups in the country.
Under the Startup India initiative, the Fund of Funds for Startups (FFS) scheme, Startup India Seed Fund Scheme (SISFS) and Credit Guarantee Scheme for Startups (CGSS) were implemented to provide capital at different stages of the business cycle of startups. went.
The government launched the Startup India initiative in January 2016 with the intention of creating a robust ecosystem to foster innovation and encourage private investment in the startup ecosystem.
The initiative aims to catalyze the startup culture and build a strong and inclusive ecosystem for innovation and entrepreneurship in India.
There are over 84,000 startups registered with the Department for Promotion of Industry and Internal Trade (DPIIT) as of November 2022. These startups can take advantage of certain tax incentives including income tax announced under the Startup India initiative.
Jatin Kanabar, Partner, Deloitte India, said that there is a provision in the budget to encourage startups and MSME sector.
“Proposals of enhanced credit guarantee, extension of incorporation date for tax holidays, exemption from carry forward of losses, enhanced threshold for presumptive tax regime and payment linked deductions to encourage timely recovery by MSMEs are all welcome There are eligible provisions,” he said.
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)