Union Finance Minister Nirmala Sitharaman presents the Union Budget 2023-24 in the Lok Sabha in New Delhi on February 1. Photo Credit: PTI
Emphasizing on the importance of entrepreneurship for the country’s economic development, Finance Minister Nirmala Sitharaman on Wednesday proposed to extend the incorporation period for income tax benefits to eligible start-ups by another year till March 31, 2024. New Companies in the Sector March 2023 included, so far.
“The government has taken several measures for start-ups and they have shown results. India is now the third largest ecosystem for start-ups globally and second in innovation and quality among middle-income countries,” Ms Sitharaman said while presenting the Union Budget 2023-24 in the Lok Sabha.
The finance minister also proposed to extend the benefit of carry forward of losses on change in shareholding of start-ups to 10 years from the existing seven years.
In January 2016, the government launched the Startup India initiative to foster innovation in the startup ecosystem and create a strong ecosystem to encourage private investment. Since then, several steps have been taken to promote startups in the country.