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Indian Government Revises Tax Exemptions For Startups
Startup culture in India is growing by leaps and bounds. In what comes as an affirmation, the Government of India is planning on reviewing the tax regime for startups. This is being done in order to attract more entrepreneurs to the startup front. This development coincidental comes days before the Global Entrepreneurship Summit, which will be held in Hyderabad.
Various ministers of the Indian Government are working towards making the country a friendly place for startups to thrive. Accelerating the startup culture in India is a pet project of the Modi Government and this revised program helps in creating just the kind of platform needed for growth.
The StartUp India Campaign was launched by the Modi Government in 2015 and since then, the Government has identified 671 startups for tax exemption. Further tax changes are unlikely before the next Budget which has been scheduled for 1 February 2018. The proposed ideas can be addressed only after being given clearance by Prime Minister Narendra Modi.
A large part of this agenda aims at tweaking taxation policies. One of the major policies introduced earlier was tax exemption for startups during the first three years. Now, the policy is revised to give these startups seven years of tax exemption and not three. This is being done in order to give startups a wider berth for profits as compared to the initial policy.
The Prime Minister said on Independence Day startups are a major contribution to the Indian economy as they are a sure fire way of creating jobs. With this new introduction, the Modi Government plans on accelerating the process and creating a startup friendly economy!
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