Budget Extends Window For Startups to Avail Tax Benefits
Finance Minister Arun Jaitley has proposed extending the window for startups to avail tax benefits to first seven years of existence, a move that will allow new ventures to extract full benefit of the permitted deductions. Earlier, startups were allowed to claim profit-linked deduction for three years out of the first five years of existence.
"...the profit linked deduction available to the start-ups for three years out of five years is being changed to three years out of seven years," Jaitley said in his Budget Speech. Nasscom President R Chandrashekhar said, startups could not avail full benefits of the three-year clause as they typically tend to begin making profits only after a few years of operation.
"By then, the window of benefit would end. Now even if the startup reports prof...