Asserting the importance of entrepreneurship for the economic development of the country, Finance Minister Nirmala Sitharaman on Wednesday proposed to extend the period of incorporation for income tax benefits to eligible start-ups by one more year till March 31, 2024. Tax benefits were available for start-ups incorporated until March 2023, up till now.
“The government has taken a number of measures for start-ups and they have borne results. India is now the third-largest ecosystem for start-ups globally and ranks second in innovation and quality among middle-income countries,” Ms. Sitharaman said as she presented the Union Budget 2023-24 in the Lok Sabha.
The Finance Minister also proposed to extend the benefit of carry forward of losses on change of shareholding of start-ups to 10 years of incorporation, from the current seven years.
In January 2016, the government launched the Startup India initiative to build a strong ecosystem for nurturing innovation and encouraging private investments in the startup ecosystem. Since then, a series of steps have been taken to promote startups in the country.
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