The Government has decided to extend tax benefits of 88 startups out of 8,765 that have been recognized by the Department of Industrial Policy and Promotion as reported by a top official today.
Prime Minister, Narendra Modi had introduced a spectrum of incentives on January 2016 to encourage startup growth in the country which included a provision of a tax holiday, exemption from capital gains and an inspector raj free regime as a part of the action plan.
- IT Services (15 percent)
- Education (7 percent)
- Healthcare and Life Sciences (12 percent)
- Agriculture (4 percent)
DIPP Secretary also reported that out of the startups that have been recognized for tax benefits,35 percent of their directors are women.
The ranking of these startups will be announced in June this year which will be evaluated on the basis of initiatives taken up by them to promote startup ecosystem in the country. Seed funding, incubation centers, angel and venture funding and policy support are few of the 38 action points covered from seven areas of the ranking framework.
” All states are keenly working on promoting startups. The ranking framework recognizing states and union territories has further given a boosts to the startup momentum in the country”, said the DIPP secretary.
The government has spent Rs. 26.08 crore for strengthing startup culture in the country. In addition to that, eight research parks are to be set up at premier institutes of the country including IIT Bombay, IIT Kanpur and IISC Bengaluru for which Rs.680 crores have been sanctioned.
DIPP too has been actively working for the startup initiative and has reframed regulatory changes to ease up the process of business and has cut down on compliance burden.