Comments
Eligibility for start-ups to claim tax holidays have been extended by one year to March 2022. A one year extension in eligibility has also been granted for capital gains exemption for investment in such ventures.
Finance Minister Nirmala Sitharaman, in her Budget 2021 announcement on Monday, also proposed to incentivise one person companies (OPCs) by offering flexibilities such as allowing them to grow without restriction on paid up capital and turnover and permitting them to be converted into any other type of company at any time.
Also read: Is big-tech funding in start-ups really paying off?
The FM also announced reducing the residency limit for an Indian citizen to set up an OPC from 182 days to 120 days, and allow non-resident Indians to incorporate OPCs in India.
“This will be a big boost for start-ups,” the FM said while presenting her paperless budget.
A start-up incorporated after April 1, 2016, is eligible for getting 100 per cent tax rebate on profit for a period of three years in a block of seven years provided that annual turnover does not exceed ₹25 crores in any financial year.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.