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Budget 2023 To Give Lot Of Support To India's Start-Up Ecosystem: Goyal

The government on Wednesday proposed to extend the period of incorporation of eligible start-ups by one more year till March 31, 2024, for providing tax incentives to encourage budding entrepreneurs

Budget 2023 To Give Lot Of Support To India's Start-Up Ecosystem: Goyal
Piyush Goyal, Minister of Commerce and Industry

Press Trust Of India

POSTED ON February 02, 2023 10:57 AM

Measures announced in the Budget such as extending the period of incorporation of eligible budding entrepreneurs for providing tax incentives, would provide a lot of support to further strengthen the country's start-up ecosystem, Commerce and Industry Minister Piyush Goyal has said.

The government on Wednesday proposed to extend the period of incorporation of eligible start-ups by one more year till March 31, 2024, to provide tax incentives to encourage budding entrepreneurs.

Finance Minister Nirmala Sitharaman has also proposed to ease norms for start-ups by extending the benefit of carrying forward losses to 10 years.

Goyal said that the government has consistently been supporting the start-up ecosystem and since the launch of the start-up India initiative, the country has had significant growth in the start-up arena.

"So my sense is that this (Budget) will certainly give a lot of support and help to the start-up ecosystem so that it flourishes in the years to come," the minister told PTI.

He said that the Budget also focused on promoting start-ups in the agriculture sector and making 'agri-preneurs' and giving them a boost to come up with better ideas for cold storage, food processing, and value addition in the agri sector.

Sitharaman in her Budget speech said: "I propose to extend the date of incorporation for income tax benefits to start-ups from March 31, 2023, to March 31, 2024. I further propose to provide the benefit of carrying forward losses on change of shareholding of start-ups from seven years of incorporation to ten years".

To encourage agri-start-ups by young entrepreneurs in rural areas, the finance minister stated that the government will set up an Agriculture Accelerator Fund (AAF).

A digital public infrastructure for agriculture will also be built to enable inclusive, farmer-centric solutions.

In the last year's budget, the government extended this till March 31 this year.

Eligible start-ups are implemented to provide capital at various stages of the business cycle of a start-up.

The government launched the Start-up India initiative in January 2016 with the intent to build a strong ecosystem for nurturing innovation and encouraging private investments in the start-up ecosystem.

The initiative is intended to catalyse start-up culture and build a solid and inclusive ecosystem for innovation and entrepreneurship in India.

Over 84,000 start-ups are registered with the Department for Promotion of Industry and Internal Trade (DPIIT) till November 2022. These start-ups can avail of certain tax incentives, including income tax announced under the Start-up India initiative.

Jatin Kanabar, Partner, Deloitte India, said the Budget has provided for incentivising start-ups and the MSME sector.

"Proposals for increased credit guarantee, an extension of date of incorporation for the tax holiday, relaxation of carry forward of losses, the enhanced limit for presumptive tax regime and deduction linked to payments for encouraging timely recovery by MSMEs are all welcome provisions," he said.
 

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