Published By: Pragati Pal
Last Updated: February 01, 2024, 15:13 IST
Finance Minister Nirmala Sitharaman offered the Union Budget 2024 in Parliament in the present day, February 1, 2024. (Image: PTI)
Certain tax advantages to startups and investments made by sovereign wealth or pension funds as additionally tax exemption on sure incomes of some International Financial Services Centre (IFSC) models are expiring on March 31 this yr
In a respite for the startup ecosystem, the Centre on Thursday introduced to extension of tax advantages for startups and investments made by sovereign wealth and pension funds to March 2025.
Certain tax advantages to startups and investments made by sovereign wealth or pension funds as additionally tax exemption on sure incomes of some International Financial Services Centre (IFSC) models are expiring on March 31 this yr.
“To provide continuity, I propose to extend the date to 31.3.2025,” stated Finance Minister Nirmala Sitharaman whereas presenting the Interim Budget on Thursday.
“As for tax proposals, in keeping with the convention, I do not propose to make any changes relating to taxation and propose to retain the same tax rates for direct taxes and indirect taxes including import duties,” she added.
Anil Joshi, Managing Partner, Unicorn India Ventures, stated that the extension of tax exemption to startups is an efficient gesture and provision for Rs 1 lakh crore towards the dawn section at a nominal or zero rate of interest will definitely assist small companies.
“No change to direct and indirect tax was also expected, however, we may see new rates in the full budget to be proposed in July 2024,” he stated.
Rishabh Goel, Co-Founder and CEO, of Credgenics, stated that in a bid to maintain the expansion momentum of present startups, the federal government has prolonged tax advantages by a further yr.
As many as 2,975 authorities-recognised startups have been granted Income Tax exemptions thus far, in accordance to the Department for Promotion of Industry and Internal Trade (DPIIT).
Under the ‘Startup India’ programme, the federal government offers Income Tax exemption.
In September final yr, the federal government notified new angel tax guidelines that comprise the mechanism to consider the shares issued by unlisted startups to traders.
Startups registered with the DPIIT have been exempted from the brand new norms. The authorities highlighted that the exemption will profit over 80,000 startups.
(This story has not been edited by News18 workers and is revealed from a syndicated information company feed – IANS)
