These startups are allowed to enjoy certain tax and non-tax benefits under the Startup India programme
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The report finds that in terms of overall start-up funding in Kerala, both 2018 and 2019 saw significant growth over the previous years.
The start-up would be investing the fund to expand its product line and establish presence in Africa and Asia including India, China and Japan
The report was prepared by Bain & Company in partnership with Indian Private Equity & Venture Capital Association (IVCA)
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Bengaluru-based Sporthood, a startup for sports enthusiasts, got investment from SEA Fund, which made its fourth investment in Kerala out of its seven investment ventures.
The push is coming from the fact that there are far more established entrepreneurs in India today hitting the next venture button then five years ago
Now, they can take the risk of joining without having to pay taxes on Esops immediately
CBDT Chairman P C Mody said most of the issues pertaining to startups were already addressed in last budget
The tax proposals are aimed at stimulating growth, simplifying tax structure, bringing ease of compliance and reducing litigation
ESOPs are a key instrument to attract and retain talent in startups.
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The budget recommends a five-year tax holiday on Esopss, a 10- year tax exemption for startups with under-Rs 100 crore turnover and also talks of a seed fund to push new businesses
During their formative years, startups generally use ESOPs to attract and retain highly talented employees, she added
The Council will suggest measures to foster a culture of innovation among students and others, the commerce and industry ministry said in a statement