The government is open to examining the option of extending tax-breaks to start-ups incorporated before the current cut-off date of April 1, 2016, Commerce & Industry Minister Nirmala Sitharaman has said.

"People have asked us, 'What is so sacrosanct about April 2016 and why can't start-ups incorporated before that be considered (for sops)?' Well, these are the laid down rules. We can deliberate on that (changing it)," Sitharaman said at a seminar on start-ups.

Of the 180 applications received by the government, only 16 applicants were incorporated after April 1, 2016, and are eligible for tax benefits.

Under the Finance Act, 2016, start-ups (companies and LLPs) can get income-tax exemption for three years in a block of five years, if they are incorporated between April 1, 2016, and March 31, 2019.

The Minister said it was important to follow a proper process before extending incentives to start-ups for proper accountability and to ensure transparency in the process.

To come up with ways to give a further boost to start-ups in the country, Sitharaman will hold a series of meetings with educational institutes, angel investors, venture capitalists and private equity funds and the industry. “We believe in making changes wherever required,” she said.

The Minister said the list of recognised incubators has been augmented to provide more avenues to start-ups to obtain mentoring support. Twenty industry bodies and organisations have been recognised by Department of Industrial Policy & Promotion (DIPP), which will assess the innovative nature of start-ups and provide certificates to enable them to get recognition from the Centre.

For incubators to get recognition from the government, a module to recognise incubators has been launched. This will allow them to issue recommendation letters to start-ups.

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