With a view to giving tax incentives to more entrepreneurs in the country, the Finance Ministry has proposed to extend the period of incorporation of eligible start-ups by one more year, i.e. up to March 31, 2023.
Eligible start-ups established before March 31, 2022 were provided tax incentives for three consecutive years out of ten years from incorporation. With Finance Minister Nirmala Sitharaman’s announcement on Tuesday, entrepreneurs who are starting their venture by the end of March next year will be eligible for tax incentives.
Start-ups have emerged as the drivers of growth of our economy. Over the years, the country has witnessed a manifold growth in successful start-ups. , In view of the COVID pandemic, the Union Finance Ministry proposes to extend the period for induction of eligible start-ups by one more year,” the FM said while presenting the budget.
Reacting to the proposal, Gaurav Chadha, Business Tax Partner, EY India, said, “Given that start-ups have emerged as a driver for growth, to further boost the sector, there is a need to claim income. Deadline for induction of eligible start-ups. The tax holiday incentive has been extended by one more year to March 31, 2023.
According to Jitendra Chouksey, Founder and CEO, Fitter, a facilitator of fitness and wellbeing solutions, the startup ecosystem in the country is booming with increasing job opportunities, tax benefits and investments. The expansion of tax benefits proposed in the Union Budget will further strengthen the business ecosystem of the country.
Katie Chandy, Partner & Leader – Private Taxes, EY India said, “Indian start-ups have been a legend during the last 2 years, with a record number of unicorns achieved in the last 24 months. See the narrative change with start ups in Budget 2022, focus on raising capital, new technology themes like fintech, drones as a service, EV and battery swapping technology, edtech etc get its due mention in the budget speech. ‘