The Hon’ble Finance Minister as part of the Budget speech announcing the reforms towards start-ups recognised the catapulted growth of the Indian start-up ecosystem ranking as the third largest globally indicating the vitality of entrepreneurship to our country’s economic growth. The budget amply reflects and reciprocates the Government’s thinking towards start-ups by proposing multiple reliefs and significant policy announcements.
Some of the key proposals such as extending the date of incorporation for income tax benefits to start-ups from 31 March 2023 to 31 March 2024 and the proposal to extend the benefit of carry forward of losses on change of shareholding of start-ups from seven years of incorporation to ten years will definitely go on to boost the growth of start-ups. On the other hand, it is important for the stakeholders in the start-up ecosystem to also take note of proposed changes in the online gaming sector, widening of angel tax provisions etc., which could have an impact from a ‘compliance/ cost of doing business’ perspective.
We look forward to seeing how the results of the new policies will unfold as India navigates towards its vision for the Amrit Kaal.
