Image used for illustration objective solely.
Although the Interim Budget for 2024-25 didn’t suggest any modifications in current taxation, startups are supplied sure tax advantages by manner of extension of exemptions.
According to the Budget doc, sure tax advantages to startups and investments made by sovereign wealth or pension funds as additionally tax exemption on sure revenue of some International Financial Services Centre (IFSC) models are expiring on March 31, 2024.
However, Finance Minister Nirmala Sitharaman proposed to increase the exemption expiry date by a year to March 31, 2025, to supply continuity in taxation and set off progress within the sector.
This gesture alongside with initiatives such because the PM Mudra Yojana, Fund of Funds, Startup India, and Startup Credit Guarantee schemes highlighted the federal government’s proactive stance in supporting entrepreneurial aspirations and producing employment for the youth, in line with trade gamers.
‘Fostering robust ecosystem’
The Budget’s emphasis on the expansion and world competitiveness of startups and MSMEs displays the federal government’s steadfast dedication to fostering a strong ecosystem. Adequate funds, related applied sciences, and focused coaching showcase a complete strategy in direction of empowering MSMEs, in line with Ok.R. Sekar, Partner, Deloitte India.
“As we anticipate the positive impact of these measures, the next full budget will likely unveil more concrete steps in this direction, further shaping the landscape for startups and MSMEs and the broader economy,” Mr. Sekar stated.
Sandeep Agrawal, Director and Co-founder, at TeamLease Regtech, a compliance administration agency, was of the opinion that it was about receiving assist from all fronts — expertise, analysis and growth, and monetary help.
“The vision of allowing entrepreneurs to compete globally is a commendable one. Digital Payments Index has been an instrumental tool in the formalisation of the economy and giving the underbanked and unbanked access to credit and financial services,” Agrawal stated.
According to the Finance Minister, beneath the PM Mudra Yojana, the federal government has sanctioned 43 crore loans aggregating to ₹22.5 lakh crore for entrepreneurial aspirations of the youth.
“The Budget exhibited a well-balanced and truly promoted development of the startup ecosystem, the youth and the country. The implementation of PM Mudra Yojana, the Startup India, and the Startup Credit Guarantee schemes signifies a concerted effort to facilitate the youth a seamless initiation of entrepreneurial journey,” stated Darshil Shah, Founder and Director, TreadBinary, an IT startup.
