Soon, startups may avail of 5-year tax holiday

Moneycontrol BureauIn a move to encourage entrepreneurs, the Finance Ministry is mulling offering a four-five year tax holiday to startups, reports Financial Express, quoting a source.Currently, startups can get income tax holiday for a period of three years in a block of five years. The Department of Industrial Policy and Promotion (DIPP) earlier had suggested giving a a seven-year tax holiday. But the Finance Ministry will likely opt for a lesser period.Startups have to apply and get an eligibility certificate from the inter-ministerial board of the DIPP to make the cut for the tax holiday.Since startups take a long time to break even, and come into money, commerce and industry minister Nirmala Sitharaman has been pitching for greater tax support to start-ups.