Delhi,DEC 30: The government is expected to provide tax incentives to start-ups in the forthcoming budget to support the growth of budding entrepreneurs, sources said.<\/p>\n\n\n\n
The Department for Promotion of Industry and Internal Trade\n(DPIIT) has suggested several measures to the finance ministry for start-ups in\nthe budget.<\/p>\n\n\n\n
The recommendations include extension of tax incentives to\nincubators supported under Atal Innovation Mission; reduction in GST (Goods and\nServices Tax) rates on AIF (alternate investment fund) management fees; and tax\nbenefits on ESOPs, they said.<\/p>\n\n\n\n
Start-ups need talented workforce and ESOPs are one of the\nbest options to attract skilled people as giving just high cash payout add to\nthe burden on cash-starved enterprises, industry players said.<\/p>\n\n\n\n
Tiger Global-backed tea cafe chain Chaayos founder Nitin\nSaluja said that there should be less tax on ESOPs.<\/p>\n\n\n\n
\u201cIt should attract as little tax as possible. ESOPs are one\nof the best options for startups at their early stages,\u201d Saluja said.<\/p>\n\n\n\n
Further fees charged by fund manager of AIF domiciled in\nIndia is liable to 18 per cent GST as it qualifies as a taxable supply.<\/p>\n\n\n\n
Sources said that reduction in GST rates will help India to\nbecome an investment hub.<\/p>\n\n\n\n
Startup India initiative of the government aims at fostering\nentrepreneurship and promoting innovation by creating an ecosystem that is\nconducive to growth of budding entrepreneurs.<\/p>\n\n\n\n
There are 19 components under the Startup India action plan\nspanning across areas such as simplification and hand holding, funding support\nand incentives, and industry-academia partnership and incubation.<\/p>\n\n\n\n
So far the department has recognised 26,619 startups. Of\nthese, maximum were in the IT services space which was followed by healthcare\nand lifesciences, and education.<\/p>\n\n\n\n
Finance Minister Nirmala Sitharaman is likely to present the Budget for 2020-21 fiscal on February 1, 2020.<\/p>\n\n\n\n
-PTI<\/p>\n","protected":false},"excerpt":{"rendered":"
Delhi,DEC 30: The government is expected to provide tax incentives to start-ups in the forthcoming budget to support the growth of budding entrepreneurs, sources said. The Department for Promotion of<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[348],"tags":[1547,2625],"class_list":["post-34857","post","type-post","status-publish","format-standard","hentry","category-national-news","tag-finance-ministry","tag-nirmala-sitharaman"],"yoast_head":"\n