The third budget of Mr. Jaitely under the BJP led government has great offerings for the Startup world. Start-up India, Stand-Up India’ plan is most visible campaign of Prime Minister Narendra Modi’s Government which will boost jobs and investments in India. The campaign promotes & encourage entrepreneurs to start new firms that are not inspired by traditional businesses, is capable of generating jobs, and build an economy driven by technology and science.
We spoke to Jaspal Singh co-founder of TaxZippy.com, India’s largest Income tax filing site and he felt that this budget had a focus on startups as they are growing industry and help boom the economy. He also added that the budget has reinstated a positive push to the startup ecosystem. Here are the pointers placed by him.
Key Highlights of Budget 2016 for the Startup Industry:
- 100% deduction of profits for 3 out of 5 years for start-ups set up during April 2016 to March 2019. MAT will apply in such cases.
- Make in India – 100 % deduction of profits for startups.
- HRA deduction increased to Rs 60,000 per annum.
- Amendment in Companies Act, 2013 shall ensure speedy registration and boost startups.
- The Government will pay EPF contribution (employer’s contribution) of 8.33 per cent for all new employees for first three years.
- Entrepreneurial education to be introduced through MOOCS – Massive Open Online Course.
Other important points:
- Special patent regime with 10% rate of tax of income from worldwide exploitation of patents developed and registered in India.
- Amendment in Motor Vehicles Act to enable entrepreneurship in the road transport sector.
- SC/ST and Women entrepreneurs under the Startup India scheme will be earmarked Rs 500 crore.
- Capital gains shall not be taxed on investments in regulated fund of funds for startups.
- Support hub and escalate Scheduled Caste/Scheduled Tribe entrepreneurs.
- Long-term capital gains for unlisted firms lowered from three to two years.
The whole entrepreneur community has looked as this Budget 2016 as positive move and for the first time Budget has been prepared while keeping the startup community in mind. The Indian startups welcomed the announcements as they aimed to promote entrepreneurship and create a favourable business environment in the country.
About TaxZippy:
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