Finance Minister Nirmala Sitharaman (Nirmala Sitharaman) stated in the 2021-22 coalition budget submitted on Monday that in order to help Indian startups in the COVID-19 pandemic, the tax holiday for these companies has been extended by one year. , Until March 31, 2022.
Sitaraman said in Congress: “The tax holiday for startups has been extended for one year until March 31, 2022.”
The capital gain exemption granted to start-up companies was also extended by one year.
“The definition of small companies in the 2013 Companies Act will be revised. Companies with paid-in capital not exceeding Rs 20 crore and turnover not exceeding Rs 200 crore will be classified as small companies, which will remove more than 200,000 companies from compliance Benefit from it,” Sitharaman said.
She added: “In order to encourage the establishment of one-person companies, this type of company can grow without being restricted by paid-in capital or turnover, and can be converted into any other type of company at any time.”
Lokendra Ranawat, the founder and CEO of WoodenStreet, said that in response to the announcement of start-ups in the budget conference today, people are full of expectations for the budget, many of which have been realized. Infrastructure and healthcare are the main focus of the 2021 budget, and huge investments have been allocated to expand the road network.
“In addition, as people have predicted, start-ups are also valued in the budget. Tax and investment allowances have been increased for another year, which will benefit the growth of start-ups in the country,” Ranawat said.
“On the other hand, the investment in small and medium-sized enterprises and the suspension of loans of 20 million pounds will also play a vital role for Indian companies. The privatization of relevant government departments such as ports will also promote economic growth and employment. “
The 2021-22 coalition budget proposal is based on six pillars: health and well-being, material and financial capital and infrastructure, to boost inclusive development for the aspiring India, to revitalize human capital, innovation and R&D, at a minimum Government and supreme governance.
Shitalaman said that when the budget was submitted, the budget this time was three times as fast as the economic contraction. Unlike the past, the situation is due to the global pandemic. The 2021 Budget provides every catch for the economy. Opportunities for pace and sustainable growth.