The Centre on Wednesday announced to extend the tax holiday scheme for startups till March 31, 2024, which means that startups incorporated till the latest date next year can avail tax benefits.
The tax holiday scheme was earlier available for startups incorporated till March 31, 2023.
"We propose to extend the date of incorporation for income tax benefits startups from 31.3.2023 to 31.3.2024. I further propose to provide the benefit of carry forward of losses on change of shareholding of startups from seven years of incorporation to 10 years," said Finance Minister Nirmala Sitharaman.
In the Union Budget in 2017, the government had for the first time announced that startups incorporated after March 31, 2016 could avail a tax holiday for three out of seven years from the date of incorporation, provided that annual turnover does not exceed Rs 25 crore in any financial year.
Anuj Parekh, CEO and Co-Founder Healthysure, said that the extension of the tax benefit deadline is a positive step for the startup ecosystem.
Sitharaman also extended the benefit of carry forward of losses on change of shareholding of startups to 10 years of incorporation from seven years now.
"The amendment to set off losses for 10 years is another positive as it is difficult for disruptive and tech startups to be profitable at the get-go especially if they are catering to India's billion Internet users," he said.
Prakhar Pandey, Founder and CEO, Moolaah, said that these steps will boost entrepreneurship across the country, leading to further employment.
"With India's present startup ecosystem and a dry-up in funding across stages of growth, a few of these steps might help domestic and foreign investors to take a larger bet on good quality startups," he added.
The Economic Survey for 2022-23 said this week that more than nine lakh direct jobs have been created by the Department for Promotion of Industry and Internal Trade (DPIIT)-recognised startups, with a notable 64 per cent increase in 2022.
As per the Survey, the number of recognised startups in the country has increased from 452 in 2016 to 84,012 in 2022.
"About 48 per cent of our startups are from Tier II and III cities, a testimony of our grassroots' tremendous potential," read the Economic Survey.
Subodh Garg, CFO, Cashify, said that since the launch of the Startup India initiative in 2016, the government has taken numerous steps to establish India as a hub for startups.
"The extension of the period of carry forward of losses on change of shareholding of startups from seven years of incorporation to 10 years is another measure that will help foster the growth of the startup industry and drive innovation in the country," said Garg.
UN chief speaks out against 'ethnic cleansing’ in context of Trump plan to clear Gaza
United Nations Secretary-General Antonio Guterres has spoken out against "ethnic cleansing" in Gaza after US President Donald Trump suggested ousting Palestinians living there to neighbouring countries.
Manipur: Security forces nab eight militants with arms, ammunition
In a series of successful joint operations, Assam Rifles, in coordination with Manipur Police, apprehended eight hardcore militants from different locations of three districts in the violence-hit state, officials said on Wednesday.
Tripura’s unemployment ratio less than national average, says CM Saha
Of the 2,806 candidates, 2437 multi-tasking staff (Group-D) would be posted in 37 departments while 369 pharmacists and laboratory technicians would be posted in the health and other departments, Saha said and termed the day in providing government jobs as historic.
PM Modi presenting NE region as ‘Astalakshmi’: HM Amit Shah
Union Home Minister Amit Shah on Wednesday said that Prime Minister Narendra Modi, considering the huge development and enormous resources of the eight northeastern states, is presenting the region before the country as ‘Astalakshmi’.
BJP set to storm back to power in Delhi after 27 years: Exit polls
A poll of seven exit polls predicted 42-49 seats for the BJP in the Assembly election to end its 27-year jinx, signalling an end of Arvind Kejriwal’s winning streak in Delhi after three back-to-back victories. The final results will be declared on February 8.
India's gold investments surge 60 pc to Rs 1.5 lakh crore in 2024: Report
Gold investments in India saw a significant surge in 2024 with a rise of 60 per cent in value terms to reach $18 billion (approximately Rs 1.5 lakh crore) compared to 2023, according to a report on Wednesday.
Fate of 699 candidates sealed as voting for Delhi polls ends
A total of 1.5 crore eligible Delhi voters sealed the fate of 699 candidates in the Assembly election on Wednesday to pick a new 70-member House with the turnout hovering around 60 per cent till reports last came in at 6 p.m., an official said.
PM Modi condoles demise of eminent philanthropist and spiritual leader Prince Karim Aga Khan
Calling him a visionary who dedicated his entire life to service and spirituality, Prime Minister Narendra Modi on Wednesday condoled the demise of noted billionaire philanthropist and spiritual leader Prince Karim Aga Khan IV.