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Start-ups may get additional tax benefits in the forthcoming budget: Nirmala Sitharaman
Jan-17-2017

In order to help start-ups in the country, Commerce and Industry Minister Nirmala Sitharaman has indicated that start-ups may get additional tax benefits in the forthcoming budget, which will be unveiled on February 1, 2017. She said that the ministry has suggested the Finance Ministry to make older start-ups eligible for tax benefits by moving the cut-off date from April 1, 2016, and also increase the tax holiday period for start-ups to 7 years from the current 3 years to encourage budding entrepreneurs.

The minister has said that tax and tax-related matters always come from start-ups as it makes tangible difference to a start-up, and in that some work has happened, more to be happening. She also said that tax related (benefits) will have to come only through the budget. She added that all the suggestions of the entrepreneurs have been compiled by the ministry and given to the Finance Ministry and suggestions with regard to exempting start-ups from Minimum Alternate Tax (MAT) have also been forwarded.

On the funding constraints of start-ups, Sitharaman said that the ministry will meet officials from Reserve Bank of India (RBI), Small Industries Development Bank of India (SIDBI), banks and venture capital funds to help them get funding. Further, she said the government is committed to removing legislative hurdles, if any, being faced by them. The Centre is also involving local authorities, including states, to help the budding entrepreneurs in terms of local taxes among others.

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