Budget 2017: Nirmala Sitharaman hints at tax sops for startups

Priyanka Sahay and Ayushmann Chawla

MoneycontrolThe department of industrial policy and promotion (DIPP) has submitted a list of suggestions received by startups to the Finance Ministry, Minister of State for Commerce and Industry Nirmala Sitharaman shared on the sidelines of an event marking the one year anniversary of the Startup India initiative.

“We have been compiling many of the suggestions (from the startup ecosystem) through the year. We have given it to the Finance Minister, we'll wait to hear him,” Sitharaman said.

On a question regarding tax sops for startups, Sitharaman added that tax related announcements only will come through the budget.

“Startup related matters are already compiled and submitted. Specific tax related matters and some other suggestions were mentioned to the Finance Ministry which included startups and others too,” she added.

Moneycontrol earlier reported that a five year tax break for startups might be announced this union budget.  (Read Here)

Regarding a report of an overhaul of the Rs 10,000 crore startup fund where beneficiary VC funds will be allowed to invest partly in mature startups, Sitharaman declined to comment.

At the event Unilazer ventures founder Ronnie Screwvala unveiled a four week online Startup India learning program for entrepreneurs. Kulmeet Bawa, MD South Asia at Adobe unveiled a virtual startup hub that will act as a community for investors, incubators and entrepreneurs.

The virtual startup hub will also provide analytics, security, AI chatbots and collaborations.

The Minister further said that India’s startups can solve its local level problems.

“I want startups to think how they can make India’s existing cities smart. Every city has its problem of poor careless and laid back planning. Startups being local can plan a solution for better cities,” she said.

On the issue of archaic laws hampering startups growth, Sitharaman said that the industry needs to come forward and point them out, adding that, “you need to tell us that which legislation is archaic needs to be withdrawn.”