Finance Minister Nirmala Sitharaman has decided to extend the last date to become a company for startups by 5 years to 1 April 2030. The industry has expressed happiness over this.
This will provide tax benefits under Section 80 IAC of the Income Tax Act, 1961 for the startup marked by the Department of Industries Promotion and Internal Trade (DPIIT).
Presenting on Saturday, Sitharaman said, ‘We will continue to support the Indian startup ecosystem. I propose to extend the duration of becoming a company by 5 years, which will benefit the incorporated startup before April 1, 2030.
Describing this announcement as a big win for startups, DPIIT joint Sativa Sanjeev Singh said that this is encouraging news for startup ecosystem.
To avail this scheme, the startup must have a revenue of Rs 100 crore in addition to recognition by DPIIT.
In the Economic Law Practice, partner Rahul Charkha said that according to Section 80 IAC, startup can avail 100 percent tax exemption on profits for 3 consecutive years in the next 10 years from the year of incorption.
Abhishek Rastogi, the founder of Rastogi Chambers, said that this important tax may be more startup for the benefit, which will increase their cash flow and profit.
He said, “Startups from increased tax benefits will become attractive investment centers for venture capital, as there will be a possibility of more profit at the initial level.”
Chriscapital partner and COO Ashley Menjeus said, “This additional advantage will provide a stable policy structure to new enterprises to move forward, create employment and make a meaningful contribution to India’s economic growth.”
The startup of every region has welcomed this budget announcement and said that this step will provide financial relief and will speed up entrepreneurship. Aditya Kapoor, co -founder and Chief Operating Officer of Online Astrology platform Astroyogi, said that he has positive expectations about the impact of the announcement made in the budget.