Press Esc to close
Friday 24 February 2017
News updated at 2:07 AM IST
Weather
Max: 35.2°C
Min : 19.2°C
In Bengaluru
clear sky

Startups game for tax sops, expect incentives

Mamta Bhardwaj Bengaluru, Mar 01, 2016, DHNS
And, within the startup community, entrepreneurs and investors included, the mood remains rather perfunctory.
Finance Minister Arun Jaitley in this year’s Union Budget has ratified some of the ‘Start-up India Stand up India’ announcements.

And, within the startup community, entrepreneurs and investors included, the mood remains rather perfunctory.

Jaitley has proposed to “assist the propagation of startups through 100% deduction of profits for 3 out of 5 years for startups set up during April 2016 to March 2019.

MAT will apply in such cases. Capital gains will not be taxed if invested in regulated/notified Fund of Funds and by individuals in notified startups, in which they hold majority shares.”

Sanjay Swamy, Managing Partner at Prime Venture Partners, said, “At first glance, fundamentally, there is nothing new. I am not particularly excited.”

Naganand Doraswamy, president, The Indus Entrepreneurs, said, “The announcements only assert that the startup movement in India still holds water.”

Despite expectations of some direct announcements, the industry agrees, if 2015 was the year of planning, then this year will be the year of action for the startup movement in India. “The ease of registration process and the hope to complete the task in one day is a welcome measure. It will help them focus on building disruptive products and services,” said Shashank N D, Founder & CEO, Practo.

Fund for SC/ST
In a fresh move, Jaitley has announced the setting up of a Rs 500-crore fund to promote SC/ST entrepreneurs.

The scheme will facilitate at least two projects per bank branch, one for each category of entrepreneur, and will benefit at least 2.5 lakh entrepreneurs, Jaitley proposed.

He has also proposed the setting up of a National Scheduled Caste and Scheduled Tribe Hub in the MSME Ministry, in partnership with industry associations.

This Hub will provide professional support to SC/ST entrepreneurs to fulfil the obligations under the Central Government procurement policy 2012, adopt global best practices and leverage the Stand Up India initiative.

Swamy said, the Budget, once again, has not delivered on the digital payments ecosystem front.
However, “The devil is in the details. While setting up of the fund in itself is a novel idea, the key lies in its implementation and operationalisation,” said Doraswamy.

Owing to the lack of clarity on the operationalisation of the fund, “Follow up funding, go-to-market strategies, and other necessary support and infrastructure for such startups remain hidden” he said.

“The industry, on the whole, was expecting some direct announcement in the space, and there no concrete step has been taken,” he said, however, “These are not necessarily Budget items, and the great thing is that it is still a step forward and isn’t regressive,” he conceded.

Amit Lakhotia, who just moved out of his position as VP — Business at Paytm said, “While the Budget appears to be balanced, some sort of incentive for digital payments should have made the cut.”

 

Go to Top

Photo Gallery
A boy carrying his grand father for casting during the 4th phase of assembly elections...

A boy carrying his grand father for casting during the 4th phase of assembly elections...

NSUI activists participating in peace unity march at Delhi University in New Delhi...

NSUI activists participating in peace unity march at Delhi University in New Delhi...

A man dressed as Hindu Lord Shiva performs during a religious procession ahead of the Hindu...

A man dressed as Hindu Lord Shiva performs during a religious procession ahead of the Hindu...

An elderly woman with her goat at the parched bed of a pond in a village in Hubli district...

An elderly woman with her goat at the parched bed of a pond in a village in Hubli district...

An airplane carrying rejected asylum-seekers taxis to the take-off runway at the airport...

An airplane carrying rejected asylum-seekers taxis to the take-off runway at the airport...

Artist K P Satish Babu and team presentation a Doll Dance at the Nirantharam National Music...

Artist K P Satish Babu and team presentation a Doll Dance at the Nirantharam National Music...

Fake notes of Rs 2000 which were dispensed by an SBI ATM in south Delhi...

Fake notes of Rs 2000 which were dispensed by an SBI ATM in south Delhi...

Chief Minister of Gujarat Vijay Rupani gives envelop to a newly married couple of Brahmin Community.

Chief Minister of Gujarat Vijay Rupani gives envelop to a newly married couple of Brahmin Community.

Tigers playing with each other in cage at Sarthana National Park (Surat) in Surat...

Tigers playing with each other in cage at Sarthana National Park (Surat) in Surat...

Akshar Yoga chain members performs stunts during the awareness programme on self defense ...

Akshar Yoga chain members performs stunts during the awareness programme on self defense ...

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523