Jan 11, 2017 08:47 PM IST IST | Source: Moneycontrol.com
Here's how Budget 2017 may be a booster shot for startups
Budget 2017 may contain some good news for start-ups. Finance minister Arun Jaitley may announce a string of initiatives to support the country's start-ups, including widening of the tax-free regime to five years from three years and faster procedural clearances.
The move to extend the tax holiday from three years to five years, likely to be announced in Budget 2017-18, will come a year after Prime Minister Narendra Modi launched the "Start-Up India" programme in Delhi in January 2016.
The other measures expected include: easier exit norms for founders, simpler rules for government supplies; service tax exemption for start-ups; more funds for Atal Innovation Mission likely. The measures, if announced, will act as booster shot for startups that have been hit by wobbly market conditions and valuation markdowns.
A study by industry group National Association of Software and Service Companies (Nasscom) and Zinnov Consulting has found out that India has the third-highest number of start-ups in the world (an estimated 4,200-4,400), behind only the US and the UK.