Tax holiday for these businesses was extended by one more year to March 2022 during Budget presentations today. Capital gains exemption given to them has also been extended by one more year.
As of the last week of December, there were 41,061 govt-recognised startups in India. Of this, over 39,000 startups account for 4,70,000 jobs, according to Economic Survey 2021.
“The budget was awaited with a lot of expectations and of that most have been met. Infrastructure & healthcare were the main spotlights of budget 2021 and a large investment has been allocated for the expansion of the road network. Also, just like it was predicted, Startups were given importance in this budget as well. The tax-exempt on the revenue, as well as investments, have been increased by one more year which will be beneficial for the startup growth in the country,” said Lokendra Ranawat, Founder & CEO, WoodenStreet.
There have been many steps taken by the government to help startups, which include broadening the definition of startups, simplifying regulations, providing income tax exemptions and setting up a Rs 10,000 crore Fund of Funds run by Sidbi, as per a report by the Economic Times.
The government has also recently approved the Startup India Seed Fund Scheme with a corpus of Rs 945 crore.