Union Budget 2022: Startup Tax Holiday Upraise By Another Year

• ByStartupStory     |    February 2, 2022

At the Union Budget 2022, finance minister Nirmala Sitharaman proposed extending the startup tax excursion scheme to startups included until March 31, 2023, similarly to the startups that had already been eligible for the exemption. 

Till now, the tax excursion became to be had for startups included until March 2022. Last year, the FM had introduced a comparable one-yr extension to the startup tax excursion policy.  In the run, as much as the Budget this year, one of the most famous needs via means of the startup surroundings became the extension of the tax excursion.

This is mainly critical because the qua number of recent startups elevated in 2021 for the first time in six years. Founders had advised us that an extension of the tax excursion for startups might be an extremely good manner for the authorities to expose its dedication in the direction of constructing a strong and dynamic startup environment. 

Indi’s Startup Tax Holiday

In the Union Budget of 2017, the then finance minister, the late Arun Jaitley had introduced startups that have been included after March 31, 2016, ought to avail a tax excursion for 3 out of 7 years, from the date of incorporation. Startups can avail of this exemption provided that annual turnover does now no longer exceed INR 25 Cr in any monetary year. 

 Sitharaman introduced for the duration of her cope with that during the last yr startups have grown in relevance and their contribution to the financial system is likewise developing in importance. 

The reality that Indian startups raised $for forty-two in calendar 2021 now no longer most effective underlines the importance of the surroundings however additionally tells why startups deserve extra attention in Union Budget than in advance years.

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