Start-ups have emerged as “drivers of growth for our economy”. This is a huge recognition for the entire Startup sector and is also a testimony that the government is bullish about the growing influence and importance of Start-up ecosystem in India. Over the past few years, the country has seen a manifold increase in successful start-ups. To encourage this influential trend, the government extended the tax incentives for three consecutive years out of ten years for eligible start-ups. This should help in accelerating the start-up wave further.
It is a phenomenal development that defence specific R&D will now be opened up for industry, Startups and academia with 25% of defence R&D budget earmarked. Startups will also be promoted to facilitate ‘Drone Shakti’ through varied applications and for Drone-As-A-Service (DrAAS).
Further, the long-term capital gains on listed equity shares, units etc. are liable to maximum surcharge of 15%, while the other long term capital gains are subjected to a graded surcharge which goes up to 37%. It was proposed to cap the surcharge on long term capital gains arising on transfer of any type of assets at 15%. This step will give a boost to the Startup community strengthening re-affirmation to Atma Nirbhar Bharat.
Venture Capital and Private Equity have invested more than Rs.5.5 lakh crore last year facilitating one of the largest start-up and growth ecosystem. The announcement of an expert committee to examine and propose appropriate measures to scale up these investments signifies that the government is traveling an extra mile to fuel the Startup ecosystem.” said Atul Nishar, Founder and Chairman- Azent Overseas Education.