Commerce and Industry Minister Nirmala Sitharaman on Monday indicated that startups may get additional tax benefits in the forthcoming budget, to be unveiled on 1 February.
The Ministry has already suggested the Finance Ministry to consider raising tax holiday for startups to 7 years from the current 3 years to encourage budding entrepreneurs.
Sitharaman said tax and tax-related matters always come from start-ups as "it makes a tangible difference to a startup, and in that, some work has happened, more to be happening. Let's see what this budget is going to offer".
She said 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 has also been given to the Finance Ministry."
Tax related (benefits) will have to come only from the budget, she said, adding that suggestions with regard to exempting startups from MAT (minimum alternate tax) have also been forwarded. 4 Best Current Account Options For Start Ups In India
Further, she said the government is committed to removing legislative hurdles if any are being faced. The Centre is also involving local authorities, including states, to help the budding entrepreneurs in terms of local taxes among other measures.
The Minister also asked DIPP secretary Ramesh Abhishek to organize a meeting with RBI, SIDBI, banks and VCs to deliberate on funding related issues.
Sitharaman said this was speaking at the first anniversary of Startup India here in Delhi.How To Get A Business Loan For A Start Up Business In India?
Speaking on the occasion, Abhishek said startups 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, reports PTI.