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Union Budget 2023-24: FM Sitharaman extends tax benefits to start-ups

The allocation for start-ups in the Budget include Rs 160 crore under Startup India Seed Fund (SISF)

Finance Minister Nirmala Sitharaman holds a case containing a tablet device, during the Budget Session of the Parliament
BS Reporter
2 min read Last Updated : Feb 01 2023 | 8:04 PM IST
Union Finance Minister Nirmala Sitharaman on Wednesday extended income tax benefits for start-ups till March 2024 in a bid to boost entrepreneurship in the country. She also proposed extending the benefit of carry forward of losses on change of start-ups’ shareholding to 10 years of incorporation, from the current seven years.
 
“Entrepreneurship is vital for a country’s economic development. We have taken a number of measures for start-ups. India is now the third largest ecosystem for start-ups globally, and ranks second in innovation quality among middle-income countries,” she said.
 
The FM also proposed setting up an agriculture accelerator fund to encourage agri start-ups in rural areas. “The fund will aim at bringing innovative and affordable solutions for challenges faced by farmers,” she said.
 
The allocation for start-ups in the Budget include Rs 160 crore under Startup India Seed Fund (SISF), Rs 30 crore for Startup India, and Rs 1,470 crore for Fund of Funds.
 
“Initiatives around digital infrastructure for agriculture, the national data governance policy and digital skilling are exciting areas for start-ups to track. One area that start-ups will now need to keep in mind is the introduction of angel taxation for investments by non-resident investors. While the intent is appreciated, the rules as prescribed could unintentionally impact genuine cases such as convertible rounds,” said Pankaj Makkar, managing director, Bertelsmann India Investments.

Topics :start- upsBudget 2023funding

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