Finance Minister Arun Jaitley in his budget speech announced a 100 percent tax deduction programme for three years over a period of five years for startups approved before FY2019 under the Startup India scheme.A recent report states that startups in India are expected to raise USD 700 million and 5000 jobs in the next 12 months. The Startup India iniciative, launched in January by Narendra Modi, plans to move in the same direction by providing incentives to startups in the form better incubation, talent and capital.
To ensure that only deserving companies enjoy benefits of “Start Up Action Plan”, the government recently defined the term “startup”. A startup company, according to the government, would have equity funding of at least 20% by incubation, angel or private equity fund, an accelerator or angel network registered with SEBI endorsing the innovative nature of the business.
