Commerce and industry minister Nirmala Sitharaman indicated on Monday that start-ups may get some tax benefits in the upcoming Budget.
Speaking at the one-year anniversary of the government programme “Start-Up India”, the minister 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. Let’s see what this Budget is going to offer”.
She added that all the suggestions of the entrepreneurs have been compiled by the ministry and given to the finance ministry. Asked about raising the tax holiday for 7 years, she said: “That suggestion also we have given to the finance ministry. We have to wait.”
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Tax related (benefits) will have to come only through the budget, she said, adding that suggestions with regard to exempting start-ups from MAT (minimum alternate tax) have also been forwarded.
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,” she added.
The commerce minister also stated that startups should also explore the option of banks for their funding requirements, instead of solely depending on a single channel — Small Industries Development Bank of India (SIDBI).
“I don’t see why banks also shouldn’t be disbursing start-up funding, apart from just the Small Industries Development Bank of India (SIDBI)… why should funds be disbursed only through one channel,” Sitharaman said.
The minister also asked Ramesh Abhishek, Secretary, Department of Industrial Policy and Promotion (DIPP), to organise a meeting with Reserve Bank of India (RBI), SIDBI, banks and venture capitalists to deliberate on funding related issues. Speaking on the occasion, Abhishek said the start-ups need more support in terms of taxation and infrastructure. “We need to do more for them and we are working with the finance ministry (on tax related matters),” he said, adding that state governments too should extend full support to promote the units in the country.
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