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Union Budget 2023: Nirmala Sitharaman Proposes Extension On The Tax Benefit For Start-Ups Incorporated Till March 24

Before the budget, some of the founders (especially from the edtech sector) expected some revisions to the start-up ecosystem

Union Budget 2023: Nirmala Sitharaman Proposes Extension On The Tax Benefit For Start-Ups Incorporated Till March 24
Nirmala Sitharaman, Finance Minister of India
POSTED ON February 01, 2023 3:00 PM

In an attempt to foster the growing start-up ecosystem in the country, India’s finance minister, Nirmala Sitharaman proposed to extend income tax benefits for start-ups incorporated till March 2024 in her budget speech. 

"I propose to extend the date of incorporation for income tax benefits to start-ups from 31.3.23- 31.3.24. The benefit of carry forward of losses on change of shareholding from 7 years of incorporation to 10 years," Sitharaman added. 

Before the budget, some of the founders (especially from the edtech sector) expected some revisions to the start-up ecosystem. This announcement would bring some joy. 

Live Updates | Union Budget 2023 News And Live Updates: FM Nirmala Sitharaman's Budget Speech At 11; Income Tax Slabs, Subsidy & Other Expectations Here

The FM also praised the Indian start-up drive in her budget speech. She said that India is the home to the world's third-largest start-up ecosystem. 

Prior to the budget, the Economic Survey, which was tabled yesterday, stated that India has more than 84,000 DPIIT (Department of Promotion of Industry and Trade) registered start-ups. It also revealed that the Indian start-ups created 2,69,000 jobs in the financial year (FY) 2022, which is 36 per cent higher than the previous year. 

Prior to the economic survey, the data from the Union Ministry and Commerce pointed out that Maharashtra created the highest number of start-up jobs from 2016-2022. Bengaluru ranked second, Delhi ranked third and Uttar Pradesh came forth.  

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